Standard Chartered Joins Other Banks in Predicting Fed Rate Cut This Week
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TLDR Standard Chartered expects a 25-basis-point rate cut by the Fed this Wednesday, aligning with other major banks. The bank forecasts the Fed will keep rates steady through 2026 after this week’s cut. Standard Chartered highlights uncertainty in recent economic data, but sees the rate cut as necessary for U.S. growth. JPMorgan, Morgan Stanley, and Nomura also revised their forecasts due to weak November data and Fed officials’ comments. Market participants are focused on future Fed policy decisions and the potential impact on assets like Bitcoin. Standard Chartered has revised its forecast for the upcoming Federal Reserve meeting, now predicting a 25-basis-point rate cut. The bank joins JPMorgan, Morgan Stanley, and Nomura in expecting the Federal Reserve to reduce rates this Wednesday. After this expected cut, Standard Chartered expects the Fed to hold rates steady through 2026. Standard Chartered Changes Its Forecast According to a report by Reuters, Standard Chartered adjusted its outlook for the Federal Reserve’s monetary policy. The bank now anticipates a 25-basis-point cut in interest rates during the December Federal Open Market Committee (FOMC) meeting. “We see the case for a December insurance cut,” the bank said in a statement. However, it added that the probability of the cut is more 60-40 than the expected 95-5, given the recent uncertainty in economic data. Despite its revised forecast, Standard Chartered remains cautious about the economic outlook. The bank acknowledged that recent data releases have been limited, making it difficult to predict the exact impact. Still, the bank believes a rate cut is necessary to address slower growth in the U.S. economy. A Shift in Forecasts from Major Banks Standard Chartered’s move aligns with similar actions by other major banks. JPMorgan, Morgan Stanley, and Nomura had previously forecast that the Fed would keep rates steady. However, all three banks…
Filed under: News - @ December 9, 2025 7:25 am