JP Morgan now expects Fed to deliver next rate hike in December this year
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Fed chair Warsh has definitely stirred the pot with his latest forward guidance approach, or should I say lack thereof, as he wants markets to do the job on tightening instead. I would argue that the press conference damaged his credibility more so than it looks like he laid down
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4 itemsJPMorgan now sees the Fed hiking in September and December
Jackson Hole preview: Fed Chair Warsh likely to skip September and December rate signals
The desk anticipates that Fed Chair Warsh's upcoming speech at Jackson Hole will prioritize longer-term strategic visions over immediate monetary policy guidance. Per the full note from InvestingLive, this suggests traders may not receive the explicit rate signals they hoped for regarding September or December. Current market dynamics, which remain sensitive to incoming economic data rather than central bank rhetoric, reinforce this view. Despite some expectations for directional repricing, the absence of near-term guidance as outlined by Morgan Stanley implies that the focus will shift to Warsh's broader economic philosophy and policies.
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