JPMorgan Aced Fed’s Big Cut. It’s Less Sure on What Comes Next
- Economists say another half-point cut depends on labor market
- Rates strategists see Treasuries range bound in coming weeks
This article is for subscribers only.
JPMorgan Chase & Co., the one Wall Street titan whose economists correctly called the Federal Reserve’s half-point interest-rate cut on Wednesday, says another big reduction hinges on the US labor market getting weaker.
Michael Feroli, the bank’s chief US economist, is sticking to his call for another 50-basis-point reduction in November, but said his view is contingent on the findings of upcoming jobs reports. He had been calling for a half-point move at Wednesday’s FOMC meeting since Aug. 2, and held to it even after one of his peers capitulated on similar bets.