JPMorgan is now predicting the Federal Reserve will begin cutting interest rates when it next meets in September — and four times overall before the end of the year — as pressure mounts to ease monetary policy.
The nation’s largest bank, led by Jamie Dimon, expects a quarter-point cut after the Fed’s two-day meeting on Sept. 16-17, followed by three more cuts of the same size at their remaining meetings — which would bring the benchmark rate down to a range between 3.25% and 3.5%.
JPMorgan’s earlier projection was that the Fed would wait until December to start lowering rates. 4
The bank’s analysts pointed to signs of weakness in the labor market, including a softer jobs report and rising jobless claims, as the main reason for the accelerated timeline.
The unemployment rate in