JPMorgan and Citi U-Turn on July Rate Cut Forecast
Corporate giants JPMorgan and Citi reversed their positions on a possible interest rate cut by the Fed in July. Both companies extended the timeline for interest rate cuts due to evolving macroeconomic factors. The crypto market is on the decline as assets post declining numbers amid doubts ahead of this week’s Fed meeting.
JPMorgan Scrap Forecasts July Rate Cut
JPMorgan made a U-turn on the expected interest rate cut in July. US employment report. The better-than-expected employment report showed that corporate sentiment towards a possible interest rate cut by the Fed has weakened. Most economists now expect the Fed to maintain the status quo, with the first cuts coming in September and the second in December. But others advocate for just one cut this year.
This follows the US Jobs Report, which recorded an increase of 272,000 jobs compared to the 190,000 projected last month. The report challenged previous analysis of a slowdown in the labor market and will likely see the Fed maintain current rates. Similarly, unemployment rates rose to 4% last month, triggering broader macroeconomic concerns in the market.
At the beginning of the year, many analysts predicted further rate cuts to support financial markets, but pressure against inflation remains the key indicator of rate changes. Most financial institutions, such as JPMorgan, predicted two rate cuts, which received positive reactions from financial markets. stocks in the first quarter of 2024 and crypto assets Notched gains were made as bulls predicted multiple interest rate cuts.
Impact on Crypto Market
Interest rate cuts have had an impact on crypto prices over the years. This is because investors tend to withdraw funds from risky assets after each interest rate increase, as in previous years. The recently anticipated change in rate cuts has led to a decline in crypto prices, leading to liquidations. In the last 24 hours, crypto assets recorded losses before making a slight recovery. Bitcoin Ethereum is trading at $69,734 today, down 0.2% at $3,686.
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David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a talent for keeping up with breaking news. Staying on top of trends, David is knowledgeable about regulations, partnerships, crypto assets, stocks, NFTs, etc. He reported in various fields such as. Away from the financial markets, David cycles and rides horses.
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