JP Morgan and Goldman Sachs have realigned their interest rate outlooks, now forecasting that the Federal Reserve will deliver a quarter-point cut after its Dec. 9-10 meeting.

JP Morgan Reverses On Earlier Stance On Rate Cuts

JP Morgan, reversing its earlier prediction of a pause until January, cited recent comments from central bank officials as the primary driver for the shift.

“We now believe the latest round of Fedspeak tilts the odds toward the Committee deciding to cut rates in two weeks,” wrote chief U.S. economist Michael Feroli, according to Reuters.

The bank had previously withdrawn its December forecast following volatility in September jobs data, but has now shifted back its outlook.

Goldman Sachs concurred in a separate note, stating that with no major data releases scheduled before the meeting, the previous employment reports “may have sealed a 25 basis points cut.”

Fed Officials Signal Rate ...