JPMorgan Chase reiterates forecast of 50 basis point rate cut by the Fed in September

PANews reported on September 15 that according to Jinshi, at a time of falling inflation and weak employment data, JPMorgan economists reiterated their expectations for a 50 basis point rate cut at the Federal Reserve's policy meeting next week. "We think it's clear what the Fed should do next week, which is to cut interest rates by 50 basis points to accommodate the change in the balance of risks," Michael Feroli, the bank's chief U.S. economist, wrote in a report on Friday. Michael Feroli expects the Fed's latest quarterly median forecast for the policy rate at the end of this year to be 100 basis points lower than the forecast in June, which means two more 25 basis point rate cuts in 2024; he expects the median expectation for interest rates by the end of 2025 to be another 150 basis point cut. Michael Feroli wrote that if the Fed only cuts interest rates by 25 basis points next week, the median rate cut this year may be only 75 basis points.