JPMorgan maintains view of no more FOMC rate cuts this year

JPMorgan says the latest FOMC policy decision and statement “shaded a little bit hawkish” – the forecasts were revised to show more inflation this year and next, with little change in unemployment while Fed Chair Powell also underscored this in saying “if we don’t see that progress (on inflation), then you won’t see a rate cut.” The Committee’s median estimate of the neutral funds rate was also revised higher by an eighth to 3.125%, and this continues to be one reason that JPMorgan doesn’t see any further rate cuts: policy doesn’t appear to be that restrictive, Feroli writes.