JPMorgan has changed its outlook on US monetary policy and now anticipates that the Federal Reserve will cut interest rates at its December meeting. Michael Feroli, the bank’s chief US economist, highlighted recent comments from senior Fed officials—particularly New York Fed President John Williams—that strongly suggest an imminent easing of policy.

Previously, JPMorgan had expected no change in rates following a delayed September jobs report, which had created uncertainty around the Fed’s next move. However, the bank now foresees quarter-point rate cuts in both December and January.

Feroli explained that the latest Fed communication shifts the balance of probabilities towards rate reductions. This view is now aligned with market pricing, where swap contracts imply more than an 80% chance of a cut in December.

Original Source: Eamonn Sheridan of investinglive.com