Societe Generale and Standard Chartered cut interest rates by 50 basis points, and the Federal Reserve's policy needs to be "vigorously adjusted"

Analysts at Socie ́ te ́ Ge ́ ne ́ rale believe that the Fed's moderately restrictive stance has been maintained for too long, and there is a situation of "excessive tightening". Therefore, despite the current concerns about inflation stickiness, the risk balance of the Fed's dual mandate (employment and inflation) has been tilted towards the employment side, which makes it necessary to take a more aggressive policy adjustment (ie, a 50 basis point cut). In fact, they are not the only ones to hold this view. Standard Chartered is the only other institution predicting that the Fed will cut interest rates by 50 basis points this week. In any case, it should be noted that this view is contrary to the current market pricing and general consensus. At present, the market generally expects interest rate cuts of 25 basis points. As mentioned earlier, traders currently think the probability of the Fed cutting interest rates by 50 basis points is only about 4%.