JPMorgan Chase is currently the only large U.S. bank to stick with the Fed's 50 basis point rate cut
PANews reported on September 16 that according to Gold Ten, JPMorgan Chase is the only bank among the largest banks in the United States that insists that the Federal Reserve will cut interest rates by 50 basis points. However, although other banks have returned to the expectation of a 25-basis-point rate cut, the bank's chief U.S. economist, Michael Feroli, reiterated in a report to clients last Friday that a 50-basis-point rate cut is "the right thing to do." Misra also hopes that the Federal Reserve will initially cut interest rates by 50 basis points, but she said that due to policymakers' concerns about the potential persistence of inflation, a 25-basis-point rate cut seems slightly more likely. She added that if the Federal Reserve does cut interest rates by 25 basis points, the market reaction will largely depend on how officials "interpret" the smaller rate cut. The November presidential election has also put the Federal Reserve's decision-making in an unpleasant situation. The Republican candidate, former President Trump, warned that the Federal Reserve should not cut interest rates before the election, while Democratic Senator Elizabeth Warren has put pressure on officials to lower interest rates by 75 basis points.
