Standard Chartered Joins Major Banks in Predicting Fed Rate Cut
- Standard Chartered forecasts a 25-basis-point cut in interest rates ahead of the FOMC meeting.
- The bank’s prediction aligns with forecasts from JPMorgan, Morgan Stanley, and Nomura.
- Nomura anticipates a close vote, with some members possibly advocating for a cut of 50 basis points.
- The Federal Reserve added $13.5 billion to the banking system via overnight repo operations after ending quantitative tightening on December 1.
- Analysts note that changes in Fed policy are influencing the movement of funds into digital assets like Bitcoin.
As the Federal Reserve prepares for its upcoming decision, recent economic data has prompted major banks to revise their rate cut predictions, reflecting concerns over U.S. economic growth.
With Standard Chartered now predicting a rate cut, markets are bracing for what could be the third Fed rate cut of the year, following similar forecasts from other major banks.(Source)
