According to a report from Jin10, JPMorgan economists have reiterated their expectation that the Federal Reserve will cut interest rates by 50 basis points at its policy meeting next week, citing declining inflation and weak employment data.

"We think the Fed should be clear next week that they will cut rates by 50 basis points to adjust to the changing risk balance," wrote Michael Feroli, the bank's chief U.S. economist, in a Friday report.

Feroli expects the median of the Fed's latest quarterly forecasts for its policy rate at the end of the year to be 100 basis points lower than the June forecast, implying two more 25 basis point cuts in 2024. He expects the median forecast for the policy 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 cut for the year may only be 75 basis points.