J.P. Morgan Sees One More Interest Rate Hike in December
J.P. Morgan's chief U.S. economist, Michael Feroli, believes that the Federal Reserve will likely raise interest rates by another quarter point in December. This would be in line with market expectations and the median forecast of the Fed's members.
The latest rate hike came after the September FOMC meeting, where the committee voted unanimously to increase the federal funds rate to 3.75-4.0%. The decision was made amid persistent inflation concerns, with core Personal Consumption Expenditures (PCE) inflation above 3% every month this year.
Feroli stated that the September hike was necessary due to the Fed's inflation target of 2%, which has not been met. He also emphasized that the rate hike will support a 'timelier return' to the Committee's goal, as stated in the FOMC statement.