Standard Chartered: The Fed has no compelling reason to initiate a large-scale rate cut
According to a report by PANews on September 17, Steve Englander, the head of global G10 foreign exchange research and North American macro strategy at Standard Chartered Bank's New York branch, stated that the recent U.S. economic data does not provide convincing reasons for the upcoming FOMC meeting to cut interest rates by 50 basis points. A 50-basis-point rate cut but a policy mistake could be worse than a 25-basis-point rate cut but a policy mistake. The reason for a 25-basis-point reduction is that the upcoming inflation data does not support the target of inflation quickly approaching 2%. At the same time, the recent rise in the unemployment rate also indicates a worrying deterioration in the economy.
