JPMorgan Predicts Fed Rate Cut Amid Labor Market Concerns

According to PANews, JPMorgan has accurately forecasted a 50 basis point rate cut by the Federal Reserve this week. The bank indicated that another significant rate reduction would depend on the weakening of the U.S. labor market. Michael Feroli, JPMorgan's Chief U.S. Economist, maintains that the Federal Reserve will implement another 50 basis point cut in November. However, he emphasized that his outlook is contingent on the results of the upcoming employment report. JPMorgan's rate strategists anticipate that U.S. Treasury yields will remain range-bound until the September employment report provides further direction. Analyst Jay Barry noted, 'In the coming weeks, the U.S. Treasury yield curve may experience narrower fluctuations. Until we see the September employment report, the money market is unlikely to reflect a faster pace of rate cuts or a lower terminal rate.'