State Street Sees Half-Point Fed Rate Cut as Soon as June
- Asset manager forecasts 150 basis points of easing this year
- Outlook bucks market consensus that rates will remain high
The Marriner S. Eccles Federal Reserve building.
Photographer: Stefani Reynolds/AFP/Getty ImagesThis article is for subscribers only.
State Street Global Advisors is bucking the recent hawkish shift in market consensus to bet that the Federal Reserve will cut interest rates by 50 basis points as soon as June.
The $3.6 trillion asset manager thinks the Federal Reserve will front-run monetary easing ahead of the US presidential election in November. By the end of the year, the firm expects reductions to total 150 basis points — two and a half times what markets are currently pricing.