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Will the FED Really Cut by 50 Basis Points? Standard Chartered Shares Its Expectation

Author: Content Editor
Steve Englander, the head of global G10 FX research and North American macro strategy at Standard Chartered, believes that there is no compelling reason for the Federal Reserve to implement a large-scale interest rate cut at the upcoming FOMC meeting. He argues that recent U.S. economic data does not support a 50 basis point rate cut, suggesting that a smaller 25 basis point cut would be more appropriate. Englander highlights that inflation is not increasing rapidly, and there are signs of potential economic weakness with a slight uptick in unemployment. The final decision will be dependent on future inflation data. A Bank of America survey released on Tuesday revealed an increase in global investor confidence due to expectations of a soft landing for the U.S. economy and potential rate cuts by the Federal Reserve. This has led to a shift in asset allocation, with investors favoring bond-sensitive assets over cyclicals.

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