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

On October 14, Standard Chartered Bank analysts Nicholas Chia and Steve Englander stated in a report that although the Fed is expected to continue to drop interest rates for the remainder of 2025, the possibility of further rate cuts in 2026 will decrease if the momentum of the US economy remains strong. The two analysts pointed out that in the medium to long term, this scenario could push the dollar and US Treasury yields higher. "We believe that the market's expectation of a rate cut of about 63 basis points by the Fed in 2026 may gradually be eliminated, especially if US economic momentum continues and productivity growth exceeds expectations, which will drive yields and the dollar further up." ( Jin10 )