JPMorgan Revises FED Interest Rate Forecast: New Forecast Surprises!

Inflation concerns in the US have resurfaced due to the ongoing US-Iran conflict.

While it is predicted that the continuation of this conflict could raise inflation, it is also stated that the Fed may even raise interest rates if necessary.

At this point, JPMorgan revised its FED interest rate forecasts.

According to US banking giant JPMorgan, the interest rate reduction cycle in the US ended in December.

According to South Korean local news agency Maeil Business Newspaper, JPMorgan has revised its Fed interest rate forecasts and concluded that the interest rate reduction cycle has ended.

According to a report released by the Bank of Korea’s New York office, JPMorgan does not expect the Fed to cut interest rates this year.

JPMorgan, which initially expected the Fed to make only one interest rate cut, now does not expect any rate cuts in 2026 in light of recent developments.

The bank forecasts that interest rates will remain stable in the 3.5-3.75% range in 2026. JPMorgan expects inflation to remain above the Fed’s target for the foreseeable future.

The bank even predicts that the Fed’s next interest rate move could be in the form of an increase in 2027, potentially raising rates to 4%.

Citi and TD Cowen expect three rate cuts, while Barkley and Bank of America (BofA), Goldman Sachs, Morgan Stanley, Nomura and Wells Fargo expect two rate cuts, and Deutsche Bank expects one rate cut during the year.

*This is not investment advice.