Standard Chartered: The Fed has no compelling reason to initiate a large-scale rate cut
According to ChainCatcher news, 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 compelling 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 cut is that the upcoming inflation data does not support inflation quickly approaching the 2% target. At the same time, the recent rise in the unemployment rate also indicates a worrying deterioration in the economy.
