Franco-English and Standard Chartered Singer cut interest rates by 50 basis points, Federal Reserve policies need to be "significantly adjusted"

Analysts at FAC Bank believe that the Fed's moderate restrictive position has been maintained for too long and there is a "over-tightening". Therefore, although there are still concerns about inflation stickiness, the risk balance in the Fed's dual mission (employment and inflation) has been tilted towards the employment side. Based on this, it is necessary to adopt strong policy adjustments (i.e., a 50 basis point interest rate cut). In fact, they are not the only ones who hold this view, Standard Chartered is another only institution that predicts the Fed will cut interest rates by 50 basis points this week. In any case, it is important to be wary that this view is contrary to the current market pricing and general consensus - the current market generally expects a 25 basis point rate cut. As mentioned earlier, traders currently believe that the probability of the Fed cutting interest rates by 50 basis points is only about 4%. (Jin Shi)