JPMorgan Reverses Fed Call, Now Forecasts No Rate Cuts in 2026 and a 2027 Hike

JPMorgan Chase has significantly revised its Federal Reserve interest rate outlook, citing persistent economic strength and resilient U.S. jobs data.

• JPM now forecasts zero rate cuts throughout 2026, marking a major shift from earlier market expectations.
• The bank went further, forecasting a 25 basis point rate hike in the third quarter of 2027, suggesting a prolonged restrictive policy.