JPMorgan Chief U.S. Economist Michael Feroli finds new Federal Reserve governor Stephen Miran’s case for lowering policy rates to 2.5% or lower unpersuasive. As a result, JPMorgan left intact its call for interest rates to be lowered in 25 basis point increments until reaching 3.25%-3.5% early next year. The “wild card” is Governor Lisa Cook’s case before the Supreme Court, the economist contends. If the Court rules against her, every other governor could be at risk of dismissal, JPMorgan warns. It believes a highly politicized Federal Reserve could be more easily talked into the policy changes wanted by the Trump administration.
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