JPMorgan Correctly Predicted the Fed's 50 Basis Point Rate Cut, Further Cuts Hinged on Labor Market Weakness

JPMorgan Chase correctly predicted the Federal Reserve's 50 basis point rate cut this week. The bank stated that further significant rate cuts depend on whether the US labor market weakens. Michael Feroli, the bank's chief US economist, maintains that the Fed will cut rates by another 50 basis points in November. However, he said that his view is contingent on the results of the upcoming employment report.

JPMorgan's interest rate strategists expect US Treasuries to trade in a range until the September employment report provides direction. Analyst Jay Barry wrote, "The US Treasury yield curve is likely to trade in a tighter range in the coming weeks. Until we see the September employment report, the money market is unlikely to reflect a faster pace of cuts or a lower terminal rate." (Gold Ten)