JP Morgan expects CPI to hit Fed 2% target by late 2024 – but don’t expect more FOMC hikes

Dow Jones / Market Watch conveyed comments from the chief global strategist at JP Morgan Asset Management.

says inflation will drop under the Federal Reserve’s 2% target by late 2024

On the CPI data released Wednesday, and whats to come further ahead:

  • “I don’t think that today’s upside surprise is sufficient to trigger a rate hike next week and I continue to expect the Fed to stay on hold,”
  • “But with inflation sticky and growth resilient, the committee is likely to maintain a clear tightening bias–the dot plot may even continue to reflect expectations of an additional hike later this year.”
  • isn’t expecting the Fed to raise rates again in this cycle
  • oil prices well off their lows … so further progress on cooling headline inflation is unlikely in 2023 … will “keep the Fed on high alert.”

Jerome Powell dot plot image

This article was written by Eamonn Sheridan at www.forexlive.com. Source