.September 18, 2024 Wednesday 05:43 AM

Market participants are eagerly awaiting the Federal Reserve’s next interest rate decision, but a report from Standard Chartered suggests that the economic data does not support a 50-basis point cut. While some hope for a larger rate cut to combat economic slowdown, the data may not justify such a move.

The U.S. economy has been showing mixed signals, with inflation cooling off but indicators like consumer spending, employment, and manufacturing softening. Investors are watching closely for Fed support through rate cuts, but Standard Chartered believes the data doesn’t warrant a 50-basis point cut.

Analyzing critical economic indicators like employment numbers, consumer spending, and manufacturing output is crucial to understanding why a large rate cut might not be justified.

Interest rate cuts impact different stock market sectors differently, with real estate and utilities benefiting while financials may face challenges. Monitoring sector performance with FMP’s Sector Historical API can help investors adjust their portfolios accordingly.

Market sentiment can also influence the Fed’s decision, but data must support any significant moves. Investors should prepare for the Fed’s next move by monitoring economic indicators, sector performance, and market sentiment to make informed decisions about their portfolios.