Institution Views on Fed's 25 Basis Point Rate Cut Prediction: A Large Cut Could Trigger Market Panic
Article is form Jinse
September 18, 2024
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September 18th: Predictions for a 25 Basis Point Fed Rate Cut
Summary of Institutional Views:
- Royal Bank of Canada: Predicts a 25 basis point rate cut in September as the US economy is expected to normalize, not fall into a recession.
- Standard Chartered Bank: Argues for a 25 basis point cut, citing upcoming inflation data that doesn't support a rapid approach towards the 2% target.
- Commerzbank: The likelihood of a 50 basis point cut has been diminished due to widespread risk aversion, stabilizing oil prices, and robust economic data.
- Maybank: A significant rate cut would send a misleading signal to the market and trigger panic. Therefore, the Fed is expected to cut rates by 25 basis points.
- AngelOne: Considering the upcoming US presidential election, the Fed is unlikely to adopt a dovish stance with a 50 basis point cut. The unexpected 0.1% month-over-month increase in US retail sales in August suggests a solid US economy in the third quarter. (Gold Ten)
Source
1. Disclaimer: The views expressed are solely those of the author and do not reflect the stance of Gen3. They are not intended as investment advice.
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