JPMorgan expects September Fed rate cut despite CPI risks and warns of S&P 500 volatility
Key Takeaways
- JPMorgan expects the Federal Reserve to cut interest rates by 25 basis points in September, despite CPI inflation risks.
- August CPI is projected at 2.9% year-over-year, with core CPI at 3.1%.
JPMorgan expects the Federal Reserve to cut interest rates by 25 basis points in September despite lingering uncertainty around consumer price index data.
The bank projects August CPI at 2.9% year-over-year, with core CPI holding steady at 3.1% year-over-year. A higher-than-expected inflation reading could push rate cuts to October or December.
JPMorgan outlined potential market reactions to different CPI scenarios. Core CPI above 0.40% could cause the S&P 500 to drop 1.5% to 2.0%. A reading between 0.35% and 0.40% may trigger losses of 0.5% to 1.0%. Core CPI below 0.25% could lift the index 1.3% to 1.8%.
The bank maintains a tactically bullish stance while flagging risks from inflation, employment data, and trade developments.
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.
You may also like
Tether Theory: The Architecture of Monetary Sovereignty and Private Dollarization
A privately-owned company based in the British Virgin Islands, with a very small number of employees, has built a monetary system on a scale comparable to that of a central bank, with profitability even surpassing that of central banks.

[Long Post] What benefits does upgrading Fusaka to Ethereum bring?
Bitget Daily Morning Report (December 5) | 21shares launches 2x leveraged SUI ETF on Nasdaq; US Treasury debt surpasses $30 trillion; JPMorgan: Whether Strategy can hold may be key to bitcoin's short-term trend
Bitget December 5 Morning News Summary

Enemies reconciled? CZ and former employees jointly launch prediction platform predict.fun
Dingaling, who was previously criticized by CZ due to the failure of boop.fun and the "insider trading" controversy, has now reconciled with CZ to jointly launch a new prediction platform, predict.fun.
