Standard Chartered: If U.S. economic momentum continues, further rate cuts in 2026 may be difficult to achieve

Jinse Finance reported that Standard Chartered Bank analysts Nicholas Chia and Steve Englander stated in a report that although the Federal Reserve is expected to continue cutting interest rates for the remainder of 2025, the likelihood of further rate cuts in 2026 will decrease if the US economy remains strong. The two analysts pointed out that in the medium to long term, this scenario could push up the US dollar and US Treasury yields. "We believe that the market's expectation of about 63 basis points of Fed rate cuts in 2026 may be gradually priced out, especially if US economic momentum continues and productivity growth exceeds expectations, which will drive yields and the dollar even higher."