JPMorgan Predicts No Fed Rate Cuts Until 2027

0:00JP Morgan's top economist just dropped the bombshell forecast. No Federal Reserve interest rate cuts through all of 2026 and get this A. 25 basis point hike in the third quarter of 2027, pushing the Federal funds rate up to 4%. That's a jump from the current range of 3.50 to 3.75%. Clashing hard with the Fed's own plans for at least one cut next year, the reasons boiled down to a job market that's too strong, with unemployment at just 4.4%, and inflation still hanging above the Fed's 2% target. Add in the ongoing Iran conflict spiking oil prices since late February, and you've got stubborn price pressures that make easing a no-go, as the economist laid out on CNBC back in March. Wall streets mostly betting against JP Morgan, but markets are shifting their tune with only a 27.5% chance of a December. Cut priced into futures. Even Fed chaired Jerome Powell's playing it safe,

1:00saying that one projected 2026 cut isn't locked in if inflation doesn't cool. Other big banks like Goldman Sach see a couple cuts mid-year, but they've all delayed their timelines. For everyday folks, this means mortgage rates, car loans, and credit cards stay sky high longer, probably keeping 30-year mortgages over 6%. Percent through 2026. Powell's term ends in May 2026, with a potential new chair in the mix, but building consensus on the Fed board won't flip policy overnight. As the Fed's April 29 meeting looms with no moves expected, watch how the Middle East mess and job data play out. They could keep rates. Elevator for years, reshaping your wallet in ways we can't ignore yet. I'm Cory with the story, and you've been listening to Derm News today. AI-powered local news.