Standard Chartered: 50 basis points is not the first move, and the Fed's rate cut may come soon

Steve Englander, head of global foreign exchange research and macro strategy at Standard Chartered Bank, said that the market's reaction, that is, the dollar is weaker and bond yields are slightly lower, is roughly correct. Powell did not say "Yes, we are going to start the easing cycle with three 50 basis point rate cuts," what he did was to focus very much on the fact that the inflation target is in sight. They are worried about the labor market and say that the labor market does not have to weaken further. So without giving a timeline, this remark implies that the door is opened to a 50 basis point rate cut at some point. We still do not think that a 50 basis point rate cut is the first move, but if the labor market continues to weaken, it may come soon.