JPMorgan Chase, Bank of America Forecast New Rate Cut in November As Fed President Says Soft Landing Likely
Two of the largest banks in the US believe another rate cut from the Federal Reserve is incoming.
The Fed started its rate-cutting cycle last month, announcing a 50 bps reduction in interest rates amid concerns about the health of the US economy.
Now, analysts at JPMorgan Chase and Bank of America (BofA) think the Fed will take a more moderate approach moving forward, forecasting a 25 bps rate cut in November, reports Bloomberg.
According to the market strategists, the US is flashing signs of resilience following reports that nonfarm employment grew by 254,000 in September.
JPMorgan chief US economist Michael Feroli says the strength in the labor market should “make the Fed’s job easier.” He also says the central bank will likely take a “path of gradual rate normalization” unless a “rather large” surprise comes up in the November jobs report.
Meanwhile, BofA economist Aditya Bhave says another 50 bps rate cut is no longer necessary amid the strong labor market data.$BTC
