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JPMorgan Says Fed Won’t ‘Keep its Powder Dry,’ Sees Zero Rate

  • JPMorgan sees Fed cut of 100 basis points by end of next week
  • Economists say Fed could act before March 17-18 meeting
Federal Reserve Exterior As Fed Looks Locked In For Quarter-Point Cut
Photographer: Andrew Harrer/Bloomberg

JPMorgan Chase & Co. economists predicted the U.S. Federal Reserve will cut interest rates to the lowest level since 2015 by the end of next week, a more aggressive move than anticipated by other Wall Street banks.

Fed Chairman Jerome Powell and his colleagues will lower the benchmark federal funds rate by a full percentage point to a range of 0% to 0.25% at or before their March 17-18 meeting, JPMorgan’s economists including Michael Feroli said in a report late on Monday.