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Societe Generale and Standard Chartered predict a 50 basis point rate cut and believe the Fed's policy needs "significant adjustments."
2hours ago

According to Odaily Planet Daily, analysts at Societe Generale believe that the Federal Reserve's moderately restrictive stance has been maintained for too long and is in the process of "over-tightening." Therefore, although there are still concerns about inflation stickiness, the risk balance in the Federal Reserve's dual mission (employment and inflation) has tilted towards employment. Based on this, it is necessary to make a more forceful policy adjustment (i.e., a 50 basis point interest rate cut). In fact, they are not the only ones holding this view. Standard Chartered Bank is the only other institution to predict that the Federal Reserve will cut interest rates by 50 basis points this week. In any case, it is important to be aware that this view is contrary to current market pricing and general consensus - the market currently generally expects a 25 basis point interest rate cut. As mentioned earlier, traders currently believe that the probability of the Federal Reserve cutting interest rates by 50 basis points is only about 4%. (Jinshi)