JPMorgan, Bank of America No Longer See a Half-Point Fed Rate Cut in November
- Economists at both banks now expect a more gradual easing pace
- Payrolls rose 254,000 in September, most in six months
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JPMorgan Chase & Co. and Bank of America Corp. are now forecasting a quarter-point reduction in interest rates when the Federal Reserve next meets in November, giving up on their calls for a larger cut after labor-market data offered evidence of US economic resilience.
JPMorgan chief US economist Michael Feroli and Bank of America economist Aditya Bhave both pointed to Friday’s employment report as the impetus to rein in their expectations for the central bank’s easing path. Given the central bank’s 50-basis-point move in September, they see a solid jobs market as reason for the Fed to take a more measured approach.