Wall Street Does U-Turn on December Rate Cut

Well that didn’t take long. A week ago many on Wall Street were closing the books on 2025 rate cuts by the Federal Reserve, citing the unprecedented lack of economic data coming out of the US government and general uncertainty. Now a few economists over at JPMorgan are predicting the central bank will cut rates next month after all.

Wall Street’s largest bank had previously said investors would have to wait for the New Year. JPMorgan’s refreshed view aligns with the market perspective of swaps traders, who are presently pricing a roughly 80% chance that the Fed will ease policy by a quarter-point next week. That’s up from less than 30% a week ago.