JPMorgan pushes back expectations for first Fed rate cut to November

Due to stronger-than-expected U.S. employment data in May, JPMorgan Chase economists will be the Federal Reserve's first interest rate cut forecast from July to November. Previously, JPMorgan Chase is one of the few institutions that still predicts that the Fed will cut interest rates in July. The bank's chief U.S. economist Michael Feroli now expects the Fed will cut interest rates for the first time in November, and next year will also be consecutive quarterly rate cuts. In May after the release of non-farm payrolls data, Feroli said, “the possibility of a rate cut in July now seems minimal. From now to September three employment reports, household survey indicators are expected to be weaker, but given the recent momentum of job growth, we think it may take from now to November five reports show weakness to pass the rate cut test.”