- JPMorgan predicts December Fed rate cut advance by 25 basis points.
- Official remarks suggest support for earlier easing.
- Potential positive impact on risk assets and crypto markets.
JPMorgan Chase economists, led by Michael Feroli, revised their forecast on December interest rate cuts, influenced by Federal Reserve officials’ statements, signaling a shift in monetary policy expectations.
The forecast reversal holds potential implications for financial markets, particularly cryptocurrencies, as prior rate cut cycles have positively impacted digital asset prices and liquidity.
JPMorgan Projects Fed’s December Rate Cut Amid Official Remarks
JPMorgan Chase economists updated their forecast this week, now anticipating the Federal Reserve to reduce interest rates in December instead of January. This follows public statements from key Federal Reserve officials.
Economic projections have changed, with notable indications that the Federal Reserve is leaning toward easing policies sooner. This may lead to more favorable financial conditions and investment opportunities.
Michael Feroli, Chief U.S. Economist, J.P. Morgan, “We think a major shift in labor market momentum would be needed to prevent another cut in October. … However, if labor market risks don’t materialize in the fourth quarter — particularly in the form of a higher unemployment rate — then the Committee might pause after the October or December meetings.”
Bitcoin Price Updates: Potential Positive Effects from Rate Cuts
Did you know? Previous rate cut cycles in 2019 and 2020 triggered marked increases in digital asset values, leading to substantial gains in Bitcoin and Ethereum prices.
As of the latest data, Bitcoin (BTC) is priced at $90,424.32, holding a market cap of 1.80 trillion and dominating 58.19% of the market. While BTC saw a 3.09% increase over the past day, it experienced a 20.65% decline over 30 days, according to CoinMarketCap.
Coincu Research predicts that any confirmed moves to cut rates would likely spur investment in crypto markets, drawing upon historical data and investment strategies to previous Fed actions. This development could favorably shift market dynamics.
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Source: https://coincu.com/markets/jpmorgan-december-rate-cut-forecast/