Standard Chartered: Further Rate Cuts in 2026 Unlikely if US Economic Momentum Continues

BlockBeats News, October 14th, Standard Chartered Bank analysts Nicholas Chia and Steve Englander stated in a report that although the Federal Reserve is expected to continue cutting interest rates through 2025, the likelihood of further rate cuts in 2026 will decrease if the U.S. economic momentum remains strong.

The two analysts pointed out that in the medium to long term, this scenario may drive up the U.S. dollar and bond yields. "We believe that the market's expectation of a 63 basis point rate cut by the Federal Reserve in 2026 may gradually be removed, especially in the case of sustained U.S. economic momentum and productivity growth exceeding expectations, which will drive yields and the dollar higher." (FXStreet)