JPMorgan Chase still expects the Federal Reserve to cut interest rates by 50 basis points next week
JPMorgan Chase still expects the Federal Reserve to cut interest rates by 50 basis points next week, although the CPI report may lead some FOMC members to lean towards a 25 basis point cut. The bank believes that the current weakness in the labor market supports the rationale for a 50 basis point cut. JPMorgan Chase Asset Management, on the other hand, believes that the Federal Reserve will cut rates by 25 basis points, pointing out that inflation has cooled and there are no serious issues, therefore no need for aggressive action
JPMorgan Chase still insists that the Federal Reserve will cut interest rates by 50 basis points next week, according to data from CICC on September 12th. The bank stated that the CPI report may incline some FOMC members to cut rates by 25 basis points, but they still find the reasons for a 50 basis point hike convincing, as the focus has now shifted to weakness in the labor market. However, JPMorgan Chase Asset Management believes that the Federal Reserve will cut rates by 25 basis points next week. The institution stated that inflation has now cooled, and there is really no serious inflation issue. CPI data does not require the Federal Reserve to take drastic action, and they are pleased to see a 25 basis point rate cut next week