Standard Chartered: Raises US Economic Growth Forecast for This Year to 2.3%, Expects No Further Fed Rate Cuts This Year

Glonghui, January 30｜Eric Robertsen, Head of Global Research and Chief Strategist at Standard Chartered Bank, released a report predicting that global economic growth will remain at 3.4% in 2026, consistent with 2025. New drivers of economic growth are beginning to take shape, and in the future, growth may be increasingly driven by domestic demand and fiscal policy. The forecast for US economic growth this year has been raised from 1.7% to 2.3%. Inflationary pressures in the US may limit the Federal Reserve's room for further policy easing, so it is expected that the Fed will not cut rates again within the year. However, policy uncertainty, the US midterm elections, and the change of the Federal Reserve Chair could all impact investor sentiment and lead to shifts in policy direction. Looking ahead, the bank noted that with rising market risk factors, ongoing uncertainty in trade policy, and the increasingly widespread regions involved in geopolitical risks, the probability of extreme situations occurring in global markets this year is higher.