Chase Bank: Federal Reserve Expected to Cut Interest Rates Five Times by Mid-2026
BlockBeats News, September 10th, JPMorgan Chase predicts that the Federal Reserve will cut interest rates five times by mid-2026, each time by 25 basis points. The bank expects three consecutive rate cuts in the future meetings, bringing the rate to 3.50%–3.75% by the end of the year, followed by two more cuts in March and June 2026, bringing the rate range to 3.00%–3.25%. The prospect of rate cuts reflects a soft labor market, with only a 29,000 increase in average employment in August and the unemployment rate rising to 4.3%. Inflation remains a challenge, with core PCE growing by 2.9% year-on-year. JPMorgan Chase points out that inflation expectations remain stable, raising the likelihood of a U.S. economic recession next year to 35%. However, economic growth is expected to be stronger in the coming years. With the effectiveness of fiscal stimulus and rate cuts, the GDP growth rate in 2026 is expected to reach 2.4%. (FX Street)
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