JPMorgan Chase: Fed hints at more cautious easing cycle

Kerry Craig, global market strategist at JPMorgan Asset Management, said in a report that the Fed has signaled a more cautious approach to the easing cycle. Craig said Powell communicated well by balancing the "urgency of returning to a neutral interest rate" and acknowledging the "relatively stable economic state." Craig added that the focus has also shifted more to an employment-first approach rather than inflation. The size of the rate cut may not be as important as the ultimate goal, which is to adjust the policy rate to a closer view of the Fed's neutrality by 2026 through an expected 150 basis point rate cut by the end of 2025. Craig said that if nominal growth and the easing cycle remain stable, stocks and bonds should benefit. (Jinshi)