Xiaomo expects the Federal Reserve to cut interest rates in December, overturning its forecast a week ago

JPMorgan economists have changed their forecasts that the Federal Reserve will start cutting interest rates in December, reversing the bank's judgment a week ago that policymakers would delay rate cuts until January next year. The research team, led by the bank's chief US economist Michael Feroli, said on Wednesday that a number of leading Federal Reserve officials, particularly New York Fed President Williams, had expressed support for recent rate cuts, prompting them to reassess the situation. JPMorgan had expected rates to remain unchanged in December following last week's delayed September jobs report. JPMorgan now expects two 25 basis point cuts in December and January. " We re-pegged the final rate cut to January next year, "Feroli wrote in a note to clients." While the outcome of the next FOMC meeting remains uncertain, we believe the latest round of Fed officials has tilted the balance towards a December rate cut. "