Standard Chartered expects the Federal Reserve will not cut interest rates again this year, and the likelihood of extreme situations in global markets is higher this year

Standard Chartered Bank's Global Research Head and Chief Strategist Eric Robertsen published a report, predicting that global economic growth will maintain a rate of 3.4% in 2026, consistent with 2025. New economic growth drivers are beginning to take shape, and future growth may be more led by domestic demand and fiscal policy.

The bank stated that U.S. economic growth is expected to remain strong, with the growth forecast revised upward from 1.7% to 2.3%. U.S. inflationary pressures may limit the Federal Reserve's room for further easing, hence it is expected that the Federal Reserve will not cut interest rates again this year. However, policy uncertainty, the U.S. midterm elections, and the change in the Federal Reserve Chair may all affect investment sentiment and the direction of policy shifts.

Looking ahead, Standard Chartered noted that as market risk factors heat up - with ongoing uncertainty in trade policies and the widening scope of geopolitical risks, the likelihood of extreme situations in global markets this year is higher.

Regarding the Chinese economy, the bank expects that the mainland economy will maintain a robust momentum, driven by technology-related investments, productivity growth, and policies that promote domestic demand. Even though China's foreign trade growth may moderate this year, its proactive diversification of trade partners and the easing of U.S.-China trade frictions will help mitigate related impacts