Predicting the Federal Reserve to cut interest rates by 25 basis points of institutional views: sharp interest rate cuts or cause market panic
On September 18, the institutional views that predict the Federal Reserve to cut interest rates by 25 basis points were sorted out:
1. Royal Bank of Canada: The US economy is expected to normalize rather than recession, so the Federal Reserve will cut interest rates by 25 basis points in September.
Standard Chartered: The reason for the 25 basis point reduction is that the upcoming inflation data does not support the view that inflation is rapidly approaching the 2% target.
3. Deutsche Bank: Broad risk aversion, stabilizing oil prices and solid economic data have weakened the possibility of the Federal Reserve cutting interest rates by 50 basis points.
4. Maybank: A sharp interest rate cut would send the wrong signal to the market and cause market panic, so the Federal Reserve is expected to cut interest rates by 25 basis points.
5. AngelOne, a stockbroker: Considering the upcoming US Presidential Election, the Federal Reserve is not expected to dovishly cut interest rates by 50 basis points, and US retail sales unexpectedly increased by 0.1% month-on-month in August, indicating that the US economy remained solid in the third quarter. (Golden Ten)