JPMorgan Chase has significantly revised its U.S. monetary policy forecast. The bank now anticipates the Federal Reserve will implement zero interest rate cuts throughout 2026. This reverses JPM's previous prediction, which called for a 25-basis-point reduction starting in January.
The change follows U.S. jobs data that showed a greater-than-expected slowdown. JPM economists previously believed the U.S. economy would remain resilient. The revised projection indicates a more hawkish stance, with the financial giant now predicting a potential rate hike in 2027.
This news immediately pressured assets, including Bitcoin, which saw a price plunge following the announcement. Other major banks, including Goldman Sachs and Barclays, have also postponed their expectations for rate cuts.