JP Morgan now sees the Fed delivering consecutive fee cuts via to year-end

For some context, they’d beforehand forecast the Fed to chop simply as soon as extra this 12 months and that was for December. Their earlier name additionally confirmed 50 bps fee cuts in Q1 2026. So, that is very a lot an acceleration of that. I’d argue that worsening labour market circumstances is enjoying a key position in that regard however I feel everyone seems to be sharing the identical view now.

As issues stand, Fed funds futures are pricing in ~59 bps of fee cuts via to year-end. So, JP Morgan’s name is extra on the dovish facet and will but be reaffirmed if jobs knowledge continues to melt in Q3 this 12 months.

This text was written by Justin Low at investinglive.com.