JP Morgan economists believe that the Federal Reserve could raise US fed funds rates in September 2022. Bloomberg reports, adding that the team led by Michael Feroli believes that the goal of full employment in the United States will be satisfied by the middle of next year.
However, economists at JP Morgan remain more dovish than their colleagues at Goldman Sachs, for example, who expect monetary tightening in July.
Morgan Stanley economists still believe the Fed will not raise rates before 2023.
Returning to JP Morgan, economists predict that the first tightening by the FOMC, the Fed’s monetary policy arm, in September 2022 will be followed by another tightening in December and subsequent ones in each of the following quarters.
For Feroli & Co, the rate hike cycle will end when the adjusted inflation rate returns to zero.