JPMorgan: The Fed should cut interest rates by half a basis point this month

JPMorgan’s chief economist Michael Feroli said that the US Federal Reserve should cut interest rates by 50 basis points at its next meeting this month.

According to CNBC, Feroli said in an interview: “We think there is a strong case for them to return to neutral territory – the interest rate that is neither stimulating growth nor slowing growth – as soon as possible.” He added that the upper point of the central bank’s neutral policy is 4%, which is about 150 basis points below the current level, adding: “We think there is a good case for accelerating the pace of interest rate cuts.”

JPMorgan’s chief economist Michael Feroli said that the US Federal Reserve should cut interest rates by 50 basis points at its next meeting this month.

“We think there’s a strong case for them to return to neutrality — the rate that doesn’t stimulate growth and doesn’t dampen growth — as soon as possible,” Feroli said in an interview, according to CNBC. The central bank’s upper neutral policy target is 4%, about 150 basis points below the current level, he added. “We think there’s a good case for accelerating the pace of rate cuts,” he added.