02:25 PM EDT, 09/17/2024 (MT Newswires) -- The Federal Reserve is likely to announce a 25 basis point cut in interest rates this week with a bigger reduction probably leading the market to "misread or misinterpret such action as an intention to rush back to an accommodative stance," Stifel said Tuesday in a note.

The Federal Open Market Committee likely will note "a consideration but not a

commitment to action at every subsequent meeting," Stifel said.

While the committee is likely to maintain a base case of 25 point cut, market players have priced in a 50 point reduction with a 67% probability and forecast a cut at every subsequent meeting throughout the year, Stifel said.