The Federal Reserve may have set itself on the path to more interest rate hikes, but it's likely to need to reverse course and cut by the end of the year, Mike Moran, head of economic research at Standard Chartered, told CNBC's "Squawk Box."
Moran's call is rare among forecasters from major banks, many of whom expect the Fed to steadily lift rates over the course of this year. His views still chime with those of Ray Dalio, founder of the world's largest hedge fund, who told CNBC last week that the Fed should provide more stimulus.
Moran's timeline is not particularly straightforward either. Standard Chartered expects one more rate hike in March, followed by a cut at the end of the year.
"Looking in the next six to 12 months , the momentum in the U.S. economy just isn't there," he said. "The economic conditions, the backdrop for these continuous hikes that the Fed is talking about is just not going to be there by the end of this year, which is why we think they might have to reverse course."
The Fed and the markets have been at odds over the central bank's interest rate forecasts. When it raised rates for the first time in nine years in December, the forecasts of Fed officials pointed to four additional hikes for this year. As of now, the market is pricing in one hike and each piece of disappointing economic news has reinforced that view.
But Fed watchers don't expect the central bank to budge on its rate hike view in the statement it is expected to release at 2 p.m. ET. The Fed is not holding a news briefing after the meeting, nor is it releasing new economic or interest rate forecasts until March.
Moran said the Fed's economic projections are "very rosy," particularly on inflation expectations.