PiCK

J.P. Morgan "Fed expected to gradually cut rates through early next year"

JH Kim

Summary

J.P. Morgan said it maintained its outlook that the Fed will implement gradual rate cuts of 25bp each through early next year.
It said the policy rate is expected to fall to around 3.25~3.5%.
It said the possibility of a Supreme Court lawsuit involving Fed Governor Lisa Cook could act as a variable for policy direction.

On the 25th (local time), according to the economic breaking-news channel Walter Bloomberg, J.P. Morgan Chief Economist Michael Feroli maintained the prior forecast that the Federal Reserve (Fed) will gradually cut rates by 25bp (0.25%p) each time through early next year, lowering the policy rate to around 3.25~3.5%.

He said, "The possibility of a Supreme Court lawsuit related to Fed Governor Lisa Cook is a variable," and added, "If an unfavorable ruling is issued against Governor Cook, it could threaten other Fed governors, and a politically shaken Fed could become more vulnerable to pressure from the Trump administration."