German Bank Strategist: Lowering interest rates is the top priority for the Federal Reserve
Michael Leister, head of interest rate strategy at Deutsche Bank Research, stated that widespread risk aversion, stabilizing oil prices, and robust data further reduced the likelihood of a 50 basis point rate cut by the Federal Reserve at this meeting. He mentioned that analysts at Deutsche Bank are leaning towards a 25 basis point rate cut, "because the primary task will be to start the rate-cutting process, rather than to move quickly." "Although inflation has cleared all obstacles, especially with the possibility of further easing by spring 2025, the Federal Reserve does not believe that the U.S. economy is in or about to enter a recession." However, according to data from Refinitiv, the market still sees a higher probability of a 50 basis point rate cut than a 25 basis point rate cut
On September 18th, according to data from FXStreet, Michael Leister, Head of Interest Rate Strategy at Deutsche Bank, stated that widespread risk aversion, stabilized oil prices, and robust data further weakened the possibility of a 50 basis point rate cut by the Federal Reserve at this meeting. He mentioned that analysts at Deutsche Bank are more inclined to bet on a 25 basis point rate cut, "because the primary task will be to initiate the rate cut process, rather than to progress quickly." "Although inflation has cleared all obstacles, especially with the possibility of further easing by spring 2025, the Federal Reserve does not believe that the U.S. economy has entered or is about to enter a recession." However, according to data from Refinitiv, the market still sees a higher probability of a 50 basis point rate cut than a 25 basis point rate cut