Societe Generale: The Federal Reserve is unlikely to cut interest rates by 50 basis points in September

Odaily Odaily News: Kit Juckes, chief global foreign exchange strategist at Societe Generale, said in a report that the money market's current expectations for a U.S. interest rate cut in 2024 seem to be a bit too much, and the possibility of a larger rate cut of 50 basis points in September is still unlikely. According to Refinitiv data, the U.S. money market currently expects a rate cut of 103 basis points in 2024, suggesting that the Federal Reserve will cut interest rates by 50 basis points at least once in the remaining three meetings this year. "Unless the economy slows down significantly, the front end of the interest rate curve in the next six months has already reflected too many rate cuts," said Juckes. He said there is a lot of uncertainty about the extent of the economic slowdown. (Jinshi)