JPMorgan Chase still expects the Federal Reserve to cut interest rates by 50 basis points next week

JPMorgan Chase still insists on its prediction that the Federal Reserve will cut interest rates by 50 basis points next week. The bank stated that the CPI report might make some FOMC members lean towards a 25 basis point rate cut, but they still believe there are convincing reasons for a 50 basis point hike as the focus has now shifted to the weakness in the labor market. However, JPMorgan Asset Management believes that the Fed will cut rates by 25 basis points next week. The institution said inflation has cooled down and there really isn't a serious inflation problem. They don't think CPI data requires drastic action from the Fed and are pleased to see a 25-basis-point rate cut expected next week.