Standard Chartered Joins JPMorgan and Morgan Stanley Predicting Fed Rate Cut This Wednesday 🏦

Standard Chartered has shifted its forecast ahead of this week’s FOMC meeting, now expecting a 25 basis point rate cut, aligning with major banks such as JPMorgan, Morgan Stanley and Nomura.

🔑 Key Highlights

✅ Standard Chartered now expects a 25 bps Fed rate cut

✅ Bank joins JPMorgan, Morgan Stanley and Nomura in revised outlook

✅ Standard Chartered expects rates to remain steady through 2026 after this cut

Why it matters

According to Reuters, Standard Chartered updated its outlook ahead of Wednesday’s FOMC meeting and now projects a 25 bps interest rate cut. The bank cited uncertain economic data and slowing US growth, suggesting an “insurance cut” is increasingly justified.

The bank said the probability of a December cut is 60 percent, noting that post government shutdown data has been limited and unclear. Even so, Standard Chartered believes the Fed will keep rates unchanged through 2026 after this week’s decision.

This shift places the bank in alignment with JPMorgan, Morgan Stanley and Nomura, all of which recently reversed earlier expectations that rates would remain steady. Weaker data from November and comments from Fed officials contributed to the updated predictions.

Nomura expects the December vote to be close, with some FOMC members potentially preferring a larger 50 bps cut. They also project additional easing in 2026, including possible cuts in June and September if a new Fed chair is appointed. Former economic adviser Kevin Hassett is reportedly a leading candidate should Powell be replaced.

With markets preparing for what could be the third rate cut of 2025, investors are watching for clarity on the Fed’s forward guidance. Hassett recently noted that it would be “irresponsible” for the Fed to pre commit to a long term rate path because policy must react to incoming data.