Steve Englander is throwing cold water on the rate cut hype! ❄️

According to Odaily, Steve Englander, Head of Global G10 FX Research and North American Macro Strategy at Standard Chartered Bank's New York branch, has stated that recent U.S. economic data does not provide a compelling reason for the Federal Open Market Committee (FOMC) to cut interest rates by 50 basis points at its upcoming meeting. Englander emphasized that a 50 basis point rate cut, if proven to be a policy mistake, could be more detrimental than a 25 basis point cut under similar circumstances. The rationale for a 25 basis point reduction is that forthcoming inflation data does not support a rapid approach to the 2% inflation target. Additionally, the recent rise in unemployment rates indicates a concerning deterioration in the economy.