JPMorgan Chase Brings Forward Fed Rate Hike Expectation to December

JPMorgan Chase now expects the Federal Reserve to raise interest rates in December, which is earlier than the bank's previous expectation for the second half of 2027. "At Walsh's press conference, he once again failed to clearly explain how he intends to achieve the strong determination to fight inflation that he has staunchly claimed," wrote Michael Feroli, JPMorgan Chase's Chief U.S. Economist, in a report. Walsh also questioned whether the PCE would remain the Federal Reserve's inflation target. Both points have raised doubts about whether the new Chair can achieve the goal of reducing inflation, which in turn may create a greater sense of urgency among other members of the Federal Reserve Board, prompting them to fulfill their duties.