The following are brief expectations for today's FOMC December policy meeting as compiled from the related notes of 10 sell-side strategy and research desks.

Overall, the 10 desks expect a 25bps cut today with hints for a pause at the January meeting. 

On the USD front, eFX's LSI and ISI Indicators don't show a clear USD build-up in the run-up the meeting, but that mainly reflects low orders flow as desks square their positions into year-end.

Morgan Stanley: Morgan Stanley expects the Fed to cut its policy rate by 25bp to 4.25-4.50%, maintaining a cautious stance on further easing despite signs of disinflation and labor market cooling.

Danske: Danske expects a 25bp rate cut from the December FOMC meeting, with attention on updated Fed rate projections and macro forecasts. A dovish outlook could support EUR/USD upward movement.

Credit Agricole: Credit Agricole anticipates a 25bp rate cut at the December FOMC meeting, lowering the fed funds target range to 4.25-4.50%. While this is broadly expected, a hawkish tone could emerge, with the Fed signaling slower cuts in 2025 amid resilient economic conditions and sticky inflation.

BofA: BofA expects the Fed to cut the fed funds target by 25bp to 4.25-4.5% at its December meeting, followed by a likely pause in January, as suggested by the expected communication from the Summary of Economic Projections (SEP) and Chair Powell's remarks.

Barlays: Barclays expects the Fed to cut rates by 25bp at this week’s December meeting, aligning with market pricing, while signaling a slower pace of cuts in 2025 and skipping a January move.

MUFG: MUFG expects a 25bps rate cut from today’s December FOMC meeting, with a likely signal for a January pause. Markets will watch the updated dot plot closely for 2025 policy guidance.

TD: TD anticipates a 25bps Fed rate cut today. TD prefer buying USD dips rather than chasing highs.

Goldman Sachs: Goldman Sachs expects the FOMC to cut rates by 25bp at this week's December meeting but revises its 2025 Fed outlook, removing the January rate cut while expecting a slightly higher terminal rate forecast of 3.5-3.75%.

ING: ING expects the Federal Reserve to deliver a consensus 25bp cut today, but also to scale back on guidance for rate cuts next year. ING thinks this will allow the dollar to stay firm into year-end as wide differentials remain highly favourable for the greenback.

ANZ: ANZ expects a 25bp rate cut at the FOMC meeting today. ANZ believes that the USD will moderate into year-end before strengthening in 2025.