11:33 AM EDT, 09/17/2024 (MT Newswires) -- Macquarie said it maintains its prediction that the Federal Reserve will cut its policy rate by 25 basis points on Wednesday amid calls for a 50-basis-point cut following a weakening labor-market activity in the US.

"Monetary easing can repair this, but FOMCers may conclude that a -50bp hike is an excessive way to signal the start of an easing cycle in which indicator levels are not in a recessionary range yet, even if the trend is adverse," Macquarie said in a note.

Regardless of the size of the rate cut, the Fed is expected to adopt a "dovish" tone in its messaging, according to the note.