A mild statement from Jackson Hole and Fed Chairman Jerome Powell in the upcoming economic data appears to be certain the Fed will cut interest rates in September.
At this point, the Fed’s 25 basis points reduction is priced at 90% in the market, while the 50 basis points cut is priced at 10%.
At this point, expectations are high that the first interest rate cuts in 2025 will be 50 basis points, but as in 2024, standard chartered analysts also shared their expectations.
Therefore, standard chartered analysts said they hope that the Fed will cut large amounts of interest rates in September.
Analysts said the current policy rate for the US is 4.25-4.50%, and said they expect the Fed to cut 50 basis points in September.
Standard Chartered said the Fed is expected to cut by 0.50% based on non-farm pay and unemployment data in August.
This means that major banks have revised their forecasts. Standard Chartered initially predicted a 25 basis point reduction this month. However, the bank said the rapid cooling labor market has increased the possibility of greater cuts.
*This is not investment advice.
