Standard Chartered Anticipates Bold Rate Cut from Federal Reserve
Standard Chartered forecasts a 50 basis point interest rate cut by the U.S. Federal Reserve after disappointing jobs growth and rising unemployment. Initially suggesting a 25 basis point reduction, the brokerage highlights the softening labor market, advocating for a more substantial monetary policy adjustment at the upcoming meeting.
Standard Chartered has adjusted its expectations regarding the U.S. Federal Reserve's upcoming policy meeting, now predicting a substantial 50 basis point interest rate cut.
This revision comes in the wake of underwhelming jobs growth figures for August and an increase in the unemployment rate to 4.3%, factors that the brokerage believes signal a rapidly weakening labor market.
Previously anticipating a smaller reduction of 25 basis points, Standard Chartered suggests that the latest economic data justify a more aggressive approach by the central bank during its September 17 meeting.
(With inputs from agencies.)
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