Standard Chartered expects the Federal Reserve to cut interest rates by 50 basis points|Can Pac Swire|CC BY-NC 2.0
The Standard Chartered bank now expects the Federal Reserve to cut interest rates by 50 basis points at its September 16–17 meeting.
The expected move comes after August jobs data showed slowing growth and pushed unemployment to its highest level since 2021.
The bank had previously forecast a 25-basis-point move.
Elsewhere, Bank of America has shifted its forecast to two cuts this year: one in September and another in December. It reversed its earlier position that the Fed would hold off until 2026.
Some strategists cautioned that sticky inflation and ongoing fiscal easing could restrict how much further the Fed cuts rates beyond September.