Fed Focuses on Curbing Inflation Instead of Stimulus, Postpones Interest Rate Reductions
- JPMorgan withdraws December Fed rate-cut forecast as market odds drop below 50%, reflecting uncertainty over central bank easing timelines. - Gold and Bitcoin decline amid "risk-off" sentiment, with traders scaling back bets on Fed accommodation and asset prices adjusting to prolonged high rates. - Fed officials emphasize cautious approach to inflation control, prioritizing labor market stability over premature cuts, with 2025 easing limited to one or two 25-basis-point reductions. - Internal Fed divisio
JPMorgan Chase & Co. has retracted its forecast for a Federal Reserve rate cut in December, mirroring a wider market shift in expectations as recent economic indicators and central bank commentary point to a more measured approach. This adjustment highlights increasing ambiguity regarding when the Fed might begin easing, with market participants now assigning less than a 50% probability to a rate cut at the December 10 meeting,
The upcoming Fed rate decision on December 10 remains a central event, though policymakers have indicated they prefer to wait for more definitive economic trends before making any moves.
The minutes from the Fed’s October 28-29 meeting, due out November 19, may offer additional insight.
At present, investors are preparing for an extended phase of elevated rates,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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