Having laid the foundation for The Fed's (and the market's) thinking ahead of tomorrow's 'most important Fed meeting ever' - 50 or 25bps? political or pre-emptive? and so on - today we highlight the risks of cutting by 50bps (and the bad reasons for doing so).
Despite the market pricing in around a 70% chance of a 50bps cut tomorrow, Standard Chartered Steven Englander maintains his forecast of a 25bps FOMC policy rate cut on 18 September.