JPMorgan Chase: Whether the Fed will cut interest rates by another 50 basis points depends on employment data

JPMorgan Chase & Co. correctly predicted a 50 basis point rate cut by the Federal Reserve this week, and the bank said another big rate cut depends on whether the U.S. labor market weakens. Michael Feroli, the bank's chief U.S. economist, insisted that the Fed will cut rates by another 50 basis points in November, but said his view depends on the outcome of the upcoming jobs report. JPMorgan Chase & Co.'s interest rate strategists expect U.S. Treasuries to remain range-bound until the September jobs report provides direction. "The Treasury yield curve is likely to become more range-bound in the coming weeks," analyst Jay Barry wrote. "Until we see the September jobs report, money markets are unlikely to reflect a faster pace of rate cuts or lower final rates." (Jin Shi)