According to Odaily, JPMorgan economists have revised their prediction for the first rate cut by the US Federal Reserve from July to November, following stronger than expected employment data in May. Previously, JPMorgan was one of the few institutions still forecasting a rate cut in July. The bank's chief US economist, Michael Feroli, now anticipates the Federal Reserve will make its first rate cut in November, followed by consecutive quarterly cuts next year.
After the release of the non-farm payroll data in May, Feroli stated, 'The possibility of a rate cut in July now seems very slim. Among the three employment reports from now until September, the household survey indicators are expected to be weaker, but considering the recent momentum of job growth, we believe that it may require all five reports from now until November to show weakness in order to pass the rate cut test.'