JPMorgan Forecasts Earlier Start to Fed Rate Cuts After CPI Data

(Bloomberg) -- Economists at JPMorgan Chase & Co. are forecasting an earlier start to Federal Reserve interest-rate cuts based on benign June inflation data released Thursday. 

They now expect the Fed to begin cutting rates in September versus November seen previously.

Fed Chair Jerome Powell has said the central bank is seeking more good news on the inflation front, and the latest consumer price index readings provide it, JPMorgan economist Michael Feroli said in a note.

“We now think this paves the way for a first cut in September (previously November), followed by quarterly cuts thereafter,” Feroli wrote.

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