Standard Chartered has unexpectedly predicted that the US Federal Reserve may cut interest rates by 50 basis points, stirring discussions within the cryptocurrency community.
Standard Chartered's Rate Predictions
Standard Chartered revised its forecast from a 25 to a 50 basis point cut, citing weak employment data from the US. Recent figures showed the slowest job growth in four years, with unemployment rising to 4.3%.
Expectations from Other Banks
Other major banks, such as Barclays and Bank of America, foresee a more tempered, incremental reduction. Meanwhile, Morgan Stanley and Deutsche Bank express caution regarding such a substantial cut, yet agree that a rate cut is forthcoming.
Impact of Rate Cuts on Cryptocurrencies
If the Federal Reserve cuts rates, it could favor risk assets. Lower rates reduce borrowing costs, potentially impacting investments in cryptocurrencies. Fed officials have expressed support for rate cuts, fueling speculation about market reactions.
The potential rate cut by the Federal Reserve generates considerable interest among cryptocurrency investors, who are keenly awaiting the outcomes from the September meeting.
