JPMorgan still expects the Fed to cut rates by 50 basis points next week

JPMorgan Chase is sticking with its forecast that the Fed will cut rates by 50 basis points next week. The bank said the CPI report may make some FOMC members lean toward a 25 basis point rate cut, but they still see a compelling case for a 50 basis point rate hike as the focus now shifts to the weakness in the labor market. However, JPMorgan Asset Management believes the Fed will cut rates by 25 basis points next week. The agency said inflation has now cooled and there really is no serious inflation problem. The CPI data does not require drastic action from the Fed, and it is good to see a 25 basis point rate cut next week. (Jinshi)