JPMorgan Economists Expect 50 Basis Point Rate Cut Next Week

PANews, September 15: According to JinShi, JPMorgan economists are reiterating their expectation for a 50 basis point rate cut at the Federal Reserve's policy meeting next week, citing declining inflation and weak employment data.

"We think the Fed should do what is clear to us next week, cut rates by 50 basis points to adjust to the changing risk balance," Michael Feroli, the bank's chief US economist, wrote in a Friday report.

Feroli expects the median of the Fed's latest quarterly projections for the policy rate at the end of this year to be 100 basis points lower than the June forecast, implying two more 25 basis point cuts in 2024. He expects the median of the forecast for the rate at the end of 2025 to be 150 basis points lower.

If the Fed only cuts rates by 25 basis points next week, Feroli wrote, the median for the full year's rate cuts might only be 75 basis points.