JPMorgan Revises Forecast, Sees US Fed Rate Hike in 2027
According to Bloomberg, JPMorgan no longer expects a Federal Reserve rate cut and now projects a 25bps hike in Q3 2027 amid changing economic conditions.
Summary
On January 12, JPMorgan announced it no longer forecasts a U.S. Federal Reserve interest rate cut, reversing its previous expectation for a reduction in January 2026. The bank now projects a single 25 basis point rate increase in the third quarter of 2027, citing updated economic and inflation outlook. This shift marks a significant change in policy expectations and aligns with a longer-term tightening view.
Terms & Concepts
- bps (basis points): A unit measuring interest rates, equal to 0.01%.
- US Fed (Federal Reserve): The central bank of the United States, responsible for setting monetary policy.