JPMorgan sees ‘very benign’ CPI report paving way for Fed rate cut in September

JPMorgan’s Chief U.S. Economist Michael Feroli says the “very benign” June CPI report is, to use Fed Chair Jerome Powell’s words, “good news” and thinks this paves the way for a first interest rate cut in September. The firm, which previously forecast a first cut to come in November, believes that “if the immaculate disinflation signal in this morning’s claims figures plays out, then the Fed should be able to take a more leisurely journey back to neutral” and forecasts quarterly cuts to follow the September one.