Standard Chartered Bank: Powell opens the door for a 50 basis point rate cut, and a rate cut may come soon

ChainCatcher news, according to Jinshi reports, Standard Chartered Bank's Global Foreign Exchange Research and Macro Strategy Head Steve Englander stated that the market's reaction, namely the weakening of the dollar and a slight decline in bond yields, is generally correct.

Powell did not say, "Yes, we are going to start the easing cycle with three 50 basis point rate cuts." What he emphasized was the fact that the inflation target is within reach. They are concerned about the labor market, stating that the labor market does not need to weaken further. Therefore, without providing a timeline, this statement implies that it opens the door to a 50 basis point rate cut at some point. We still do not believe that a 50 basis point cut is the first move, but if the labor market continues to weaken, it may come soon.