Major brokerages expect the Federal Reserve to keep interest rates unchanged this year, after policymakers kept rates on hold on Wednesday while Chair Kevin Warsh offered few clues on the future policy path.
J.P. Morgan joined the likes of BofA Global Research and Deutsche Bank and said it expects a 25 basis point rate hike in December this year. It previously expected an increase in the second half of 2027.
The widely expected decision to leave policy on hold in July drew dissents from three of the 12 members of the Federal Open Market Committee, who wanted a quarter-percentage-point hike instead.
Traders are ramping up expectations for the Fed to leave interest rates unchanged again in September. The probability for a hold now standing at 30%, up from 24% seen before the latest meeting, the CME Group's FedWatch tool showed.
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