Societe Generale Predicts Fed Rate Cuts in September, Limited Dollar Decline

IconCryptoNewsTerminal Staff23 Jul, 2024

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Societe Generale Predicts Fed Rate Cuts in September, Limited Dollar Decline

Societe Generale, a French bank, anticipates the US Federal Reserve will initiate interest rate cuts potentially as early as September. However, the bank projects that the decline in the value of the US dollar will be moderate. As stated in a report cited by Reuters, "The 2021-2022 US dollar rally has provided ample room for a cyclical correction, but unless the US economy slows down much more than we currently anticipate, we see limited scope for a sharp decline in interest rates back to where they were before the Covid shock, in 2020." The report also highlighted the volatility in the USD/JPY currency pair, which has fluctuated significantly, approaching the 140 level after trading at 156.197. The report attributed the pressure on the Japanese currency to rising US interest rates, among other factors.

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