
JPMorgan economists now expect the Federal Reserve to begin rate cuts in December, projecting two 25 basis point reductions supported by top Fed officials’ remarks.
JPMorgan’s economics team, led by Michael Feroli, has revised its forecast to predict that the Federal Reserve will start rate cuts in December instead of January. The bank expects two consecutive 25 basis point cuts, the first in December and the second in January, citing support from top Fed officials. This aligns with market expectations that have surged amid labor market weakness and dovish Fed commentary.