JPMorgan, Citi Cling to July Fed Rate-Cut Bets Ahead of Jobs Data
- Dovish forecast needs validation from May jobs report Friday
- Markets ceased pricing in a July Fed rate cut in April
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Graeme Sloan/BloombergThis article is for subscribers only.
Wall Street’s last holdouts for a US interest-rate cut in July are preparing for their clearest sign yet on whether they — or traders in the market — are correct about the likely path of Federal Reserve monetary policy.
JPMorgan Chase & Co. and Citigroup Inc. are among the few banks still predicting that the Fed will ease next month. Traders all but ruled out a July cut back in April, and now expect steady rates until November, swap rates indicate. The case for earlier rate cuts has strengthened in recent days, however, helping drive the longest streak of global bond gains since December.