BNP Paribas and Standard Chartered predict that the Fed will cut interest rates by 50 basis points, believing that the Fed's policy needs "a forceful adjustment."

September 15th: An analyst from Natixis bank holds the view that the Federal Reserve's moderately restrictive stance has been maintained for an overly long time, resulting in a situation of "over-tightening." Consequently, despite the current concerns about inflation stickiness, the risk balance of the Federal Reserve's dual mandate (employment and inflation) has inclined towards employment. In light of this, a more forceful policy adjustment (that is, a 50-basis-point rate cut) is necessary. In fact, they are not the sole ones with this perspective. Standard Chartered Bank is another institution that has predicted that the Federal Reserve will cut interest rates by 50 basis points this week. Nevertheless, it is important to note that this view conflicts with the current market pricing and the general consensus. Currently, the market widely anticipates a 25-basis-point rate cut. As previously mentioned, traders currently estimate the probability of a 50-basis-point rate cut by the Federal Reserve to be only approximately 4%. (FX678)