JPMorgan Asset Management Says Fed Rate Cuts May Top Forecasts

Reasonable base case is 150 basis points of cuts: Mac Gorain
JPMorgan Asset favors buying five-, seven-, 10-year Treasuries

WATCH: Fed Bank of New York President John Williams says monetary policy is restrictive enough.Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Ruth Carson

January 11, 2024 at 12:19 AM UTC

Updated on

January 11, 2024 at 6:41 AM UTC

This article is for subscribers only.

The Federal Reserve may end up cutting interest rates more than it’s currently signaling as the US economy slows, driving a rally in shorter-maturity Treasuries, according to JPMorgan Asset Management.

“What the market’s pricing is roughly 1.5% of cuts and that’s probably a reasonable central case,” said Seamus Mac Gorain, head of global rates in London at the money manager, which oversees about $2.9 trillion. “In bad economic outcomes it could be, you know, quite a bit bigger than that.”