12/01/2026
JPMorgan has sharply revised its outlook for U.S. monetary policy, now forecasting a 25-basis-point interest rate increase in the third quarter of 2027, a significant reversal from its earlier expectation of rate cuts.
The updated call reflects a reassessment of the policy trajectory at the Federal Reserve, as persistent inflation risks and resilient economic conditions challenge assumptions of an imminent easing cycle.
Other major financial institutions are also dialing back expectations for near-term cuts. Barclays and Goldman Sachs have both pushed their projected timing for rate reductions to mid-2026, underscoring a broader shift on Wall Street toward a more prolonged period of restrictive monetary policy.
