J.P. Morgan forecasts Fed to cut rates at next four meetings

J.P. Morgan expects the Federal Reserve to cut interest rates by 25 basis points at each of its next four meetings, bringing the rate down to 3.5%.

In a note issued on Aug. 7, J.P. Morgan said its forecast comes amid signs of a slowdown in both the labor market and the broader economy.

It also pointed to a potential leadership shift at the Federal Reserve, following President Donald Trump’s announcement of plans to nominate economist Stephen Miran to replace Governor Adriana Kugler, who resigned last week.

The bank noted that the new appointment could pave the way for deeper institutional reforms at the central bank.

These expectations come as Trump continues to criticize and rebuke Fed Chair Jerome Powell for adopting a wait-and-see approach instead of cutting the rates since the start of the year.