Standard Chartered Bank: The Federal Reserve has no convincing reason to initiate large-scale interest rate cuts

Steve Englander, head of global G10 foreign exchange research and North American macro strategy at Standard Chartered Bank's New York branch, said that recent U.S. economic data did not provide a convincing reason for the upcoming FOMC meeting to cut interest rates by 50 basis points. A mistake in cutting 50 basis points could be worse than a mistake in cutting 25 basis points. The reason for reducing by 25 basis points is that the soon-to-be-released inflation data does not support inflation quickly approaching the target of 2%. At the same time, the recent rise in unemployment rate also shows worrying deterioration in economy.