The largest bank in the US believes the Federal Reserve will start loosening monetary policy starting next month.
JPMorgan Chase predicts that the Fed will slash interest rates by 25 basis points (bps) during its meeting between September 16th and 17th, reports the New York Post.
The banking giant also expects the Fed to deliver 25 bps cuts in September, October, and December, lowering its benchmark rate by a full 1% to a range of 3.25%-3.5%. Analysts at the bank say weakness in the US labor market has given the Fed the green light to cut rates earlier than previously expected.
Earlier this month, JPMorgan Chase warned the US economy was flashing a recession signal following major downward revisions to May and June job growth figures.
As JPMorgan anticipates the Fed moving to stimulate the economy, fellow banking giant Morgan Stanley is eyeing several stock market sectors it says offer strong growth potential based on fundamentals.
In a Bloomberg interview, Morgan Stanley chief US equity strategist Mike Wilson says the stock market is in the early stages of a new bull run that began after the “nasty” correction in April. According to Wilson, investors stand to benefit from exposure to three key risk/reward plays.
“Right now, the risk/reward still looks pretty good, where the revisions are positive – things like industrials, financials, parts of the technology sector – these are areas that are continuing to show positive earnings revision breath.
There’s definitely some value in some of these pockets.”
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
