JPMorgan: Futures market prices basically reflect that the Federal Reserve will cut interest rates by 100 basis points or more by the end of December
PANews reported on September 17 that according to a report by Gold Ten, David Kelly, Chief Global Strategist at JPMorgan Asset Management, said that the Federal Reserve's interest rate decision this week may not be able to solve a core problem facing the market, which is how many rate cuts are expected for the rest of the year. When Federal Reserve officials last released their forecasts, they expected only a 25-basis-point rate cut by 2024. But even if the Federal Reserve's new forecast is adjusted to two rate cuts this year, it will still be far below market expectations. Kelly pointed out that the prices in the futures market basically reflect that by the end of December, the Federal Reserve will cut rates by a full 100 basis points or more. The actual policy path will depend on the employment and inflation data released before the next meetings in November and December.
