JPMorgan's cautious easing forecast

According to JPMorgan Strategist Marko Kolanovic, a star name in the market, the Fed will cut interest rates less than the markets are pricing in. According to JPMorgan Strategist Marko Kolanovic, Fed Chair Jerome Powell’s statements reducing expectations for a March rate cut supported the view that global central banks will not begin easing before mid-year. Kolanovic, who published a note on Monday, said, “In the absence of a tangible shock, we think this year’s easing will be more moderate than the markets are pricing in.” For Europe, Kolanovic pointed to the January PMI data, noting that core goods price increases and extended order delivery times will result in a pause in the decline in goods prices. JPMorgan had lowered its “increase weight” recommendation for US bonds at the end of January as markets’ expectations of early and aggressive rate cuts waned.