Standard Chartered: The US dollar and US Treasury yields still have significant room for upward adjustment

Standard Chartered believes that, given the serious divisions within the Federal Open Market Committee, the speeches of Federal Reserve officials could have a significant impact on monetary policy in the next two weeks. Steven Englander, the global G-10 foreign exchange research head, wrote in a report that Federal Reserve Chairman Jerome Powell has changed his usual stance of "we base our decisions on data and make no promises" and clearly stated that he cannot guarantee a rate cut in December. "Overall, the market's expectations for rate cuts have not even been halved, so if the divisions within the Federal Reserve are indeed as significant as Powell suggests, we believe there is still considerable upside potential for yields and the dollar." "The uncertainty surrounding future rate cuts aligns with our previous view that the FOMC will not cut rates in 2026."