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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