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."
JH Kim
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