Investing.com — The Federal Reserve will deliver a hawkish rate cut on Wednesday, but not as hawkish as the market expects, Standard Chartered said in a recent note, expecting the Fed to follow up with another rate cut in January amid ongoing softness in the labor market.
“Fed funds futures now price less than a 20% probability of a follow-up cut on 29 January,” Standard Chartered said, adding that this was “too low.”
The December labor market data will likely point to ongoing softness that would justify another cut in January.
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