Cointime

Download App
iOS & Android

Societe Generale and Standard Chartered are bullish on a 50 basis point rate cut, suggesting the Fed needs to make significant adjustments to its policy.

 analysts at Societe Generale believe that the Federal Reserve's moderately restrictive stance has been maintained for too long and there is a risk of "excessive tightening". Therefore, despite concerns about current inflation stickiness, the risk balance in the Federal Reserve's dual mandate (employment and inflation) has shifted towards employment, and based on this, it is necessary to adopt a more aggressive policy adjustment (i.e. a 50 basis point rate cut). In fact, they are not the only ones holding this view, Standard Chartered Bank is another institution predicting that the Federal Reserve will cut rates by 50 basis points this week. However, it is important to be cautious as this view contradicts the current market pricing and general consensus - the current market widely expects a 25 basis point rate cut. As mentioned earlier, traders currently believe that the probability of a 50 basis point rate cut by the Federal Reserve is only about 4%. 

Comments

All Comments

Recommended for you

  • Trump Shares Op-Ed Claiming He is Winning the War Against Iran

    On August 29, U.S. President Trump shared a commentary article from the New York Post on Truth Social on Saturday, which stated that he is winning the war against Iran and should maintain the current strategy. The title of the article Trump shared read: 'Trump is Winning the War Against Iran - Stay the Course.'
  • Morgan Stanley: 2028 as a Key Observation Point for Global Memory Competition Landscape

    On August 29, Morgan Stanley pointed out that the rise of Chinese memory manufacturers should not be viewed merely as a technological catch-up or low-cost substitution; what is truly noteworthy is that their production capacity may gradually become large enough to alter the supply structure of the global memory market. Changxin Technology and Yangtze Memory Technologies are currently entering the mainstream product market and gradually extending into high-profit markets such as HBM, high-end server DRAM, and enterprise SSDs. Morgan Stanley considers 2028 as an important observation point for the global memory competition landscape. From 2026 to 2027, demand for AI servers, capacity crowding of advanced wafers by HBM, import substitution, and the time required for customer certification may absorb most of the new supply from Chinese memory manufacturers. By 2028, as Chinese manufacturers expand production, the additional capacity from Samsung, SK Hynix, and Micron, which had previously initiated expansions, will also be released. At that time, the supply variables in the global memory market will significantly increase. Morgan Stanley estimates that Changxin's DRAM monthly production capacity will rise from 180,000 wafers in 2025 to 300,000 in 2026, accounting for approximately 13% of global DRAM wafer capacity and about 11% of bit shipments; by 2028, it is expected to further increase to 500,000 wafers, and by 2031, it could reach 800,000 wafers. If the expansion proceeds smoothly, Changxin's global DRAM bit shipment market share could approach 15% by 2030, and it may even have the opportunity to surpass Micron in production capacity around 2028, becoming the third-largest DRAM supplier in the world.
  • US Spot Ethereum ETF Sees Net Inflow of $102.17 Million Yesterday

    On August 29, according to monitoring by Trader T, the US spot Ethereum ETF recorded a net inflow of $102.17 million yesterday.
  • US Spot Ethereum ETF Sees Net Inflow of $102.17 Million

    On August 29, according to monitoring by Trader T, the US spot Ethereum ETF experienced a net inflow of $102.17 million yesterday.
  • US Spot Bitcoin ETF Sees Net Outflow of $201.81 Million

    On August 29, according to monitoring by Trader T, the US spot Bitcoin ETF experienced a net outflow of $201.81 million yesterday.
  • US Spot Bitcoin ETF Sees Net Outflow of $201.81 Million Yesterday

    On August 29, according to monitoring by Trader T, the US spot Bitcoin ETF experienced a net outflow of $201.81 million yesterday.
  • BTC Surpasses $78,000

    Market data shows that BTC has surpassed $78,000, currently priced at $78,009.49. The 24-hour decline has narrowed to 3.23%. Due to significant market fluctuations, please ensure proper risk management.
  • BTC Surpasses $78,000

    Market data shows that BTC has surpassed $78,000, currently priced at $78,009.49, with a 24-hour decline narrowing to 3.23%. The market is experiencing significant volatility, so please ensure proper risk management.