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JPMorgan and Citi change their forecasts about when the Fed will cut interest rates

Fed Chairman Jerome Powell considers Stablecoins “a form of currency”

JPMorgan and Citi adjusted their interest rate forecasts after stronger-than-expected jobs data.

Citigroup Inc. economists. and JPMorgan Chase & Co. revised their forecast for a Fed rate cut. These companies have now changed their expectations.

Citigroup changed its forecast after releasing better-than-expected May jobs data. The bank now predicts that US policymakers will make the first moves of interest rate cuts in September, while JPMorgan does not foresee any changes until November.

Andrew Hollenhorst, Citigroup’s chief US economist, explained this change in a recent report.

He said: “We are changing the basic scenario of the first interest rate cut from July to September.” Despite signs that the US labor market and economy are slowing, Hollenhorst believes that “surprisingly strong job growth” last month will cause the Fed to pause and wait for more data on activity and slowing inflation.

Similarly, Michael Feroli, JPMorgan’s chief U.S. economist, argued in a report Friday that “recent acceleration in employment growth” shows possible took more than three months so that the Fed thinks it may have to cut interest rates.

Citigroup’s new forecast calls for interest rate cuts 3/4 points in September, November and December this year. JPMorgan revised its forecast to just one cut this year, followed by one in each quarter next year.

As of this week, at least six other major banks Wall Street has predicted that the Fed will cut interest rates in September, and at least four banks predict that the Fed will cut interest rates for the first time in December.

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Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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