JPMorgan: Uncertainty about future Fed rate cuts will linger after this week's meeting

Odaily News David Kelly, chief global strategist at JPMorgan Asset Management, said the Federal Reserve's interest rate decision this week may not resolve a core question facing the market, which is how many rate cuts are expected for the rest of the year. When Fed officials last released their forecasts, they expected only a 25 basis point rate cut in 2024. But even if the Fed's new forecast is adjusted to two rate cuts this year, it will still be far below traders' expectations. Kelly pointed out that prices in the futures market basically reflect that the Fed will cut interest rates by a full 100 basis points or more by the end of December. The actual policy path will depend on employment and inflation data released before the next meeting in November and December. (Jinshi)