J.P. Morgan Forecasts Final Fed Rate Hike in December

J.P. Morgan anticipates one additional Federal Reserve rate hike in December, citing supply-driven inflation, but does not expect a prolonged tightening cycle. While core PCE inflation has remained above 3% this year, recent data showed a cooling trend. The firm noted that the September hike helped maintain the Fed's credibility under Chair Kevin Warsh. Additionally, J.P. Morgan is monitoring five internal Fed task forces, including potential changes to the dot plot and balance sheet policies, though these are not expected to alter the current rate outlook.