Fed Chairman Jerome Powell’s mild statements in Jackson Hole and the incoming economic data make it seem certain that the Fed will cut interest rates in September.
At this point, a 25 basis point cut by the FED is priced in at 90% in the market, while a 50 basis point cut is priced in at 10%.
At this point, while expectations are increasing that the first interest rate cut of 2025 will be 50 basis points, as in 2024, Standard Chartered analysts also shared their expectations.
Accordingly, Standard Chartered analysts said they expect the Fed to make a large interest rate cut in September.
Analysts, stating that the current policy rate in the US is at 4.25-4.50 percent, said they expect the Fed to cut interest rates by 50 basis points in September.
Standard Chartered said it expects the Fed to cut interest rates by 0.50%, based on August nonfarm payrolls and unemployment data.
This means the major bank has revised its forecast. Standard Chartered initially predicted a 25 basis point cut this month. However, the bank stated that the likelihood of a larger cut has increased due to the rapidly cooling labor market.
*This is not investment advice.