Economic tremors ripple across financial markets as shifting global dynamics push major banks to alter their interest rate forecasts. J.P. Morgan now expects the Federal Reserve to cut interest rates by 25 basis points at its September meeting, moving up its forecast from December.
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The shift reflects signs of labor market weakness and uncertainty surrounding President Donald Trump‘s latest Fed nomination.
The bank still sees three more quarter-point cuts following the September move before the Fed pauses.
“For [Fed Chair Jerome Powell], the risk management considerations at the next meeting may go beyond balancing employment and inflation risks,” analyst Michael Feroli said.
The firm also highlighted that lower net immigration and pressure from the Trump administration for …