The U.S. Federal Reserve is expected to reduce interest rates by 50 basis points in September

Standard Chartered has raised its forecast for the Federal Reserve’s September meeting, now expecting a 50 basis point rate cut instead of the 25 basis point reduction it previously predicted.

The shift reflects the bank’s view that slowing U.S. economic momentum and signs of weakness in the labor market could push the Fed to act more aggressively to support growth.

A larger-than-anticipated cut would underscore the central bank’s urgency to ease financial conditions amid growing economic headwinds.

Markets are closely watching the September decision to gauge how far and how fast the Fed may move to lower rates through the remainder of the year.