- Standard Chartered anticipates US interest rate cuts in 2025.
- Bond yields predicted to decrease within the year.
- Expectation of resilient US stock performance amid rate changes.
Standard Chartered Bank anticipates interest rate cuts by the US Federal Reserve in 2025, with a forecasted decrease in US 10-year Treasury bond yields.
This prediction aims to offset fiscal risks and buoy the bond market, drawing varied market reactions.
Fed’s 2025 Rate Cuts: Economic Growth and Market Stability
Standard Chartered Bank’s Senior Investment Strategist, Foo Ken Yap, indicated that despite rising concerns over the US fiscal deficit, interest rate cuts are expected in 2025. These measures aim to stabilize bond markets and drive economic growth.
The anticipated decrease in US 10-year Treasury bond yields from approximately 4.59% to a range of 4% to 4.25% within 12 months is seen as an adaptive response. This change reflects the Fed’s readiness to support economic resilience and the bond market’s stability. According to the Standard Chartered Market Outlook, “The 10-year US government bond yield had already moved into our 12-month target range of 4.00-4.25%, testing short-term support around 4.15%.”
Market reactions have been varied, with investors showing cautious optimism about US stocks. Standard Chartered remains bullish, predicting robust corporate investment to underpin market strength. The bank also advises using gold as a hedge against inflation and recession risks.
Historical Trends and Bitcoin’s Market Position
Did you know? The last major rate cut cycle in the US was during the 2007-2008 financial crisis, significantly impacting global markets and reshaping investment trajectories.
Bitcoin (BTC) trades at $110,393.61, with a market cap of $2.19 trillion, demonstrating a robust 24-hour trading volume increase of 68.07%, as reported by CoinMarketCap. Over 60 days, BTC’s value has grown by 30.90%, indicating active market dynamics.
The CoinCu research team anticipates steady market conditions with potential monetary policy flexibility. Insights suggest that historical trends like the Fed’s policy shifts could prepare markets for potential economic soft landings. Standard Chartered Market Outlook notes, “Major central bank rate cuts should support performance” as they upgraded Developed Market Investment Grade government bonds to Overweight.
Source: https://coincu.com/339060-standard-chartered-2025-interest-rate-cuts/