JP Morgan Delays US Rate Cut Expectations to November
CryptoNewsTerminal Staff07 Jun, 2024
JP Morgan Delays US Rate Cut Expectations to November
JP Morgan has revised its US interest rate cut forecast, predicting the first cut in November instead of July as previously anticipated. This shift follows positive US non-farm payroll data for May. Citigroup has also adjusted its timeline, expecting the initial cut in September. Andrew Hollenhorst, Citigroup's chief US economist, attributes the change to the strong job growth, noting its impact on the Fed's decision-making. Michael Feroli, JP Morgan's chief US economist, suggests that job market improvements may delay the "broad labor market weakness" scenario that triggers rate cuts. While Citigroup forecasts three cuts in September, November, and December, JP Morgan has revised its earlier projection of three cuts this year to one in November and one in each quarter of 2024.
