JPMorgan economists revised their rate hike expectations for May and June, which were previously 25 basis points.
JPMorgan Chase & Co. The Fed raised its interest rate hike expectations for the next two-month meeting. Economists, who previously expected an increase of 25 basis points at each meeting, now expect an increase of 50 basis points at each meeting.
In a note shared with their customers, economists said, “Fed officials seem to be more willing to increase interest rates by 50 basis points. For this reason, we increased our rate hike forecast by 25 basis points each to 50 basis points for May and June. We expect it to continue with 25 basis points increases in July and beyond.”
It was stated that President Jerome Powell’s words ’50 basis point rate hike is on the table’ last week were effective in changing expectations.
