Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Will the FED Really Cut by 50 Basis Points? Standard Chartered Shares Its Expectation

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

BitcoinsistemiBitcoinsistemi2024/09/17 22:51
By:Mete Demiralp

Standard Chartered analyst made a statement on whether he really expects a 50 basis point cut from the Fed.

There is no compelling reason for the Fed to initiate a large-scale rate cut at the upcoming Federal Open Market Committee (FOMC) meeting, according to Steve Englander, head of global G10 FX research and North American macro strategy at Standard Chartered.

Englander pointed to recent U.S. economic data in a Sept. 17 speech that said he did not support a 50 basis point rate cut, arguing that a larger rate cut could be more damaging than a smaller 25 basis point cut if the decision proves wrong.

Englander said inflation is still not approaching the Fed's 2% target rapidly, while a slight increase in unemployment points to potential economic weakness. Given these factors, a modest 25 basis point cut may be more appropriate, but the final decision will depend on upcoming inflation data.

Related News BREAKING: Statement from the CFTC Chairman Regarding the Cryptocurrency Platforms Popular Recently - They Are Under Investigation

On the subject, a Bank of America survey released on Tuesday showed a significant increase in global investor confidence in September, marking the first improvement since June. The optimism stems from expectations of a soft landing for the U.S. economy and possible rate cuts by the Federal Reserve. The survey found a shift in asset allocation, with cash holdings falling to 4.2% and investors favoring bond-sensitive assets over cyclicals. The overweight position in utilities reached its highest level since 2008, while the commodity rate fell to its lowest level in seven years.

*This is not investment advice.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

US equities reverse losses as inflation data, key earnings report loom

Nvidia is scheduled to report its Q4 earnings on Wednesday afternoon

Blockworks2025/02/25 07:22

Ethereum Faces Worst February Since 2018 Amid Market Pressure

Ethereum risks its worst February if it falls below $2400, with macroeconomic factors adding to the pressure. Can ETH recover?Historical Trends vs. Current Market ConditionsMacroeconomic Uncertainty Weighs on ETHWhat’s Next for Ethereum?

Coinomedia2025/02/25 07:11

Fear Signals a Bullish Move: Are You Ready?

Bullish markets often start with fear, while bear markets begin in euphoria. Are we at the start of a new bullish leg up?The Role of Fear in Bullish Market TrendsEuphoria: The Silent Start of a Bear MarketWhere Are We Now?

Coinomedia2025/02/25 07:11