JPMorgan forecasts US benchmark rate to remain unchanged this year

JPMorgan has presented a base case scenario in which the U.S. benchmark interest rate will remain unchanged this year, with a 25 bp increase projected for the third quarter of 2027, CoinDesk reported, citing Reuters. The bank's forecast contrasts with current market expectations, as the CME Federal Funds futures market is pricing in two 25 bp rate cuts within the year. However, JPMorgan added that the possibility of rate cuts could re-emerge if the labor market weakens again or if inflation slows rapidly.