Fed, interest rate
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There's another Federal Reserve meeting on the calendar this month, but will mortgage rates fall once it's over?
Traders revised their rate cut bets for January after the latest labor report came in roughly in line, while the unemployment rate dipped to 4.4%. After the latest job report, the chances of a 25 basis point rate cut stand at 3.
J.P. Morgan predicts the U.S. Federal Reserve's next move will be a rate hike in 2027, while Barclays and Goldman Sachs joined Morgan Stanley in postponing rate cut calls to mid-2026 as data suggested that the labor market was not rapidly deteriorating.
JP Morgan no longer expects Fed rate cuts in 2026, now forecasting a 2027 hike. Goldman Sachs and Barclays delay cut predictions.
Federal Reserve Bank of Minneapolis President Neel Kashkari said interest rates may be close to a neutral level for the US economy now, leaving it up to incoming data to guide the central bank’s actions.