Post by : Badri Ariffin

Economists at JPMorgan Chase & Co have notably adjusted their expectations ahead of a pivotal policy meeting, now forecasting that the US Federal Reserve will implement interest rate cuts next month. This change comes as prominent Fed officials offer supportive comments, indicating that a reduction in borrowing costs may happen sooner than earlier anticipated.

The revised outlook is especially timely as the Federal Open Market Committee prepares to meet on December 9–10 in Washington. Previously, JPMorgan had expected that the central bank would maintain the current rate in December, only starting cuts in January, largely due to the recent delays in the September jobs report.

However, fresh remarks from central figures, notably New York Fed President John Williams, have led the bank to reevaluate this timeline. According to their latest predictions, JPMorgan now anticipates two quarter-point cuts: one in December and another in January, effectively pulling the easing cycle forward by a month.

Market reactions are reflecting this revision, with swap traders estimating about an 80% chance of a rate reduction occurring next week—up from under 30% just a week ago. This dramatic increase indicates a rising belief that the central bank may take swift action to bolster the economy amidst changing labor data and policymakers’ signals.

As we approach December’s key meeting, these updated predictions are generating buzz in the markets and drawing greater focus to the Fed’s impending decisions, making this one of the year's most scrutinized moments.

#Global News #Business News #Economic