JPMorgan has reversed its stance on U.S. monetary policy and now expects the Federal Reserve to cut interest rates at the December meeting. Chief US economist Michael Feroli said recent remarks from senior Fed officials, especially New York Fed President John Williams, point clearly toward a near-term easing move. The bank had previously forecast no change after the delayed September jobs report muddied the signal.
JPMorgan now expects quarter-point cuts in both December and January. Feroli noted that the latest round of Fedspeak “tilts the odds” toward action, aligning the bank’s view with market pricing, where swaps imply roughly a >80% chance of a December cut.
