Economics
JPMorgan Plays Down Odds of Full-Point Fed Rate Hike
- Odds of full percentage-point move are lower than a third
- Investors are fully pricing in a 75 basis-point hike next week
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Federal Reserve officials are unlikely to raise interest rates by a super-sized 100 basis points when they meet next week, according to JPMorgan Chase & Co. chief US economist Michael Feroli.
“We think the odds of a 100 basis-point move -- though certainly not zero -- are lower than a third,” he wrote in an note to clients Wednesday. “Good drivers don’t increase their speed as they get closer to their destination.”