The Fed likely isn't done with jumbo rate cuts and could deliver another one in November, JPMorgan's Michael Feroli said.
The Federal Reserve likely isn't done with jumbo rate cuts and could deliver another one in November, said JPMorgan Chase economist Michael Feroli, who accurately called the central bank's move Wednesday. At its much-anticipated meeting Wednesday, the Fed approved a half percentage point, or 50 basis point, cut to its benchmark funds rate that ran counter to the 25 basis point move that many Wall Street economists and strategists had been expecting.
More benign labor data would, instead, seal the case for the FOMC's goldilocks scenario of 25bp eases per meeting over the remainder of the year." Futures market pricing Thursday suggested a 25 basis point move in November followed by a 50 basis point cut in December, according to the CME Group's FedWatch. A basis point equals 0.01%. The Fed will see two more nonfarm payrolls counts before the November meeting.
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