JP Morgan Asset Management: The U.S. government shutdown may affect the Federal Reserve's decisions, expecting one rate cut in the first half of next year
JP Morgan asset management strategist Xu Changtai stated that the Federal Reserve has lowered interest rates by 25 basis points to a range of 3.75%-4%, in line with market expectations. However, it is worth noting that due to the ongoing government shutdown in the United States, many key government data (including non-farm payroll data) are unavailable, so the Federal Reserve still needs to pay attention to this situation when making these decisions. He analyzed that, assuming the government shutdown no longer causes further disruptions, the Federal Reserve can continue to receive employment and inflation reports, and improvements in employment conditions or surging inflation could lead the committee to maintain interest rates. However, the possibility of a rate cut in December still exists. Nevertheless, the more hawkish tone of this FOMC meeting suggests that there may only be room for one rate cut in the first half of next year
According to the Zhitong Finance APP, JP Morgan Asset Management strategist Xu Changtai stated that the Federal Reserve has lowered interest rates by 25 basis points to a range of 3.75%-4%, in line with market expectations. However, it is worth noting that due to the ongoing government shutdown in the United States, many key government data (including non-farm payroll data) are unavailable, so the Federal Reserve still needs to pay attention to this situation when making these decisions.
He analyzed that, assuming the government shutdown no longer causes further disruptions, the Federal Reserve can continue to receive employment and inflation reports. Improvements in employment conditions or surges in inflation could lead the committee to maintain interest rates, but the possibility of a rate cut in December still exists. However, the more hawkish tone of this FOMC meeting suggests that there may only be room for one rate cut in the first half of next year
