Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Why Fed’s 50bp move hasn’t changed much for global central banks

admin by admin
September 28, 2024
in Economy
0
Why Fed’s 50bp move hasn’t changed much for global central banks
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Morgan Stanley analysts believe the Federal Reserve’s recent 50 basis point (bp) rate cut does not signal a significant change in its reaction function and will have limited impact on other global central banks. 

They note that while the Fed’s move was designed to show its commitment to staying ahead of inflation risks, the general expectation remains a series of 25bp cuts going forward. 

According to Powell, the Fed is still confident in the economy’s health and labor market, with further cuts depending on upcoming data like payrolls and consumer spending.

The Morgan Stanley note emphasizes that the global central banking response will continue to be influenced by domestic conditions.

For example, Brazil’s central bank recently hiked rates due to strong growth and a weaker currency, both signaling inflationary pressures. 

Conversely, Morgan Stanley says Indonesia’s central bank cut rates after its currency appreciated, reducing inflation risks. 

These examples are said to show how emerging markets balance global financial conditions with local economic factors.

In developed markets, Morgan Stanley analysts expect little immediate reaction to the Fed’s move. 

In Europe, the European Central Bank (ECB) is expected to continue its cautious approach, with another cut likely in December. 

The Bank of England (BoE), which paused rate cuts in September due to inflation concerns, is projected to resume cuts in November. The Bank of Japan (BoJ), meanwhile, is likely to hold steady until early 2024.

While the Fed’s 50bp cut hints at potential large shifts in the future, Morgan Stanley stresses that it does not indicate a fundamental strategy change.

The easing cycle is still viewed as positive for risk assets, but uncertainties remain, particularly around the upcoming U.S. election and its potential effects on 2025 forecasts.

This post appeared first on investing.com

Previous Post

Will Europe do whatever it takes?

Next Post

Thyssenkrupp steel head prepares staff for ‘tough’ cuts

admin

admin

Next Post
Thyssenkrupp steel head prepares staff for ‘tough’ cuts

Thyssenkrupp steel head prepares staff for ‘tough’ cuts

Trending News

Here’s why the GLD ETF stock has surged to a record high

Here’s why the GLD ETF stock has surged to a record high

April 21, 2025
Here’s why Block (SQ) stock could rise 20% after earnings

Here’s why Block (SQ) stock could rise 20% after earnings

November 2, 2024
Crypto craze grips Indian small towns as youngsters look to diversify portfolios

Crypto craze grips Indian small towns as youngsters look to diversify portfolios

December 18, 2024
Subscribe to Insightful Word


    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025
    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    August 7, 2025
    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    Goldman Sachs boosts Nvidia price target to $200 ahead of Q2 earnings

    August 7, 2025

    Recent News

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    Dow futures soar 250 points today: 5 things to know before Wall Street opens

    August 7, 2025
    Affirm stock price is rising: is it a buy before earnings?

    Affirm stock price is rising: is it a buy before earnings?

    August 7, 2025

    Latest News

    • Dow futures soar 250 points today: 5 things to know before Wall Street opens
    • Affirm stock price is rising: is it a buy before earnings?
    • Intel stock plunges sharply after Trump calls on CEO to resign: here’s why rebound may take time

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.