J.P. Morgan expects the Fed to cut interest rates in December, overturning its prediction from a week ago.

[J.P. Morgan forecasts Fed rate cut in December, reversing its prediction from a week ago] Economists at J.P. Morgan have changed their forecast, believing that the Fed will initiate a rate cut in December, reversing the bank's judgment from a week ago that policymakers would delay the cut until January next year. Led by the bank's Chief U.S. Economist Michael Feroli, the research team stated on Wednesday that several heavyweight Fed officials (particularly New York Fed President Williams) have expressed support for a recent rate cut, prompting them to reassess the situation. After the delayed September jobs report was released last week, J.P. Morgan had initially predicted that the December interest rate would remain unchanged. Currently, J.P. Morgan expects the Fed to make two rate cuts of 25 basis points each in December and January next year. “We are locking in our final rate cut timing for January next year,” Feroli wrote in a report to clients, “Although the outcome of the next FOMC meeting still carries uncertainty, we believe the latest round of statements from Fed officials has tilted the balance towards a December rate cut.”