JPMorgan reiterates its expectation of a 50 basis point rate cut by the Federal Reserve in September

ChainCatcher news, according to Jinshi reports, amid declining inflation and weak employment data, JPMorgan economists reaffirm their expectation of a 50 basis point rate cut at the Federal Reserve's policy meeting next week. "We believe it is clear what the Federal Reserve should do next week, which is to cut rates by 50 basis points to accommodate changes in risk balance," wrote the bank's Chief U.S. Economist Michael Feroli in a report on Friday.

Michael Feroli expects that the Federal Reserve's latest quarterly forecast for the policy rate at the end of this year will be 100 basis points lower than the forecast in June, which implies two more 25 basis point cuts in 2024; he anticipates that the expected median rate by the end of 2025 will be a further 150 basis points lower. Michael Feroli wrote that if the Federal Reserve only cuts rates by 25 basis points next week, the median rate cut for this year may only be 75 basis points.