Archive · 2 Jun 2025
StanChart Strategist Predicts Fed Rate Cuts Dependent on Economic Data
Imagine the US economy like a car.
A financial expert from Standard Chartered thinks the Federal Reserve, which controls the car's speed (interest rates), might slow it down twice this year.
But only if the car's engine (economy) starts to show signs of struggling.
If the engine data gets worse, the brakes (rate cuts) could be applied quickly.
The expert also thinks that a recent change in tariffs might not be as big a deal as it seemed before.
Also, he believes the interest rates on long-term government bonds will stay relatively high this year due to the government spending.
Standard Chartered Bank predicts two potential US Federal Reserve interest rate cuts this year.
Cuts are contingent on economic data showing softness, according to Steven Englander.
Englander notes surveys already show signs of economic weakness, with cuts possible if payrolls drop.
Recent tariff developments are considered less threatening, with court rulings narrowing the administration's tariff authority.
Englander anticipates the 10-year bond yield to remain high, closing the year closer to 5% than 4.50%.
- Who
- Steven Englander, Managing Director and Global Head of G10 FX Research and North American Macro Strategy at Standard Chartered Bank, and the US Federal Reserve.
- What
- Potential interest rate cuts and assessment of the economic outlook.
- When
- Potentially twice this year.
- Where
- United States
- Why
- To adjust to economic data, potentially to stimulate the economy if data weakens.
- Predicted Rate Cuts
- Two
- Organization
- US Federal Reserve
- Analyst
- Steven Englander
- Rate Cut Trigger
- Dependent on data
- Yield outlook
- Fiscal pressures