Societe Generale: The Federal Reserve is unlikely to cut interest rates by 50 basis points in September
Kit Juckes, chief global foreign exchange strategist at Societe Generale, said in a report that money markets' current expectations for U.S. rate cuts in 2024 appear to be overdone, and a larger 50 basis point cut in September remains unlikely. U.S. money markets currently expect a 103 basis point rate cut in 2024, according to Refinitiv data, suggesting the Fed will cut by 50 basis points at least once in the three remaining meetings this year. "Unless the economy slows significantly, the front end of the interest rate curve over the next six months has already reflected too many rate cuts," Juckes said, adding that there is a lot of uncertainty about the extent of the slowdown, he said.
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