How to Play JPMorgan Stock as Fed Hints Fewer Rate Cuts for 2025?

Dec 20, 2024 · Fewer Interest Rate Cuts in 2025: A Boon for JPMorgan. When the Fed began cutting rates effective September 2024, JPMorgan's stock came under pressure as lower rates would have hampered its top ...

50%
OFF

Stocks Tumble On New Fed Rate Forecast—Here’s Why

4 weeks from now

Dec 18, 2024 · They now expect to cut rates by just 0.50% for the year, which would mean two 0.25% cuts in 2025. The Dot Plot: Federal-Funds Rate Target Level FOMC participants' …

morningstar.com

100%
OFF

Rate-cutting Playbook: Investment Strategies For Offense And …

4 weeks from now

Aug 16, 2024 · This week’s inflation and labor market data free up the Federal Reserve to cut interest rates in September on their own terms. Futures markets are pricing in a 100% …

jpmorgan.com

50%
OFF

JPMorgan Chase: Covered Calls Can Help Navigate Fed Rate Cuts

4 weeks from now

Aug 15, 2024 · Current futures prices indicate a Fed funds rate of about 3.25-3.50% in July 2025, some 2% lower than current levels. This will likely push profitability closer to the bank's 17% …

seekingalpha.com

5%
OFF

How To Play JPMorgan Stock As Fed Hints Fewer Rate Cuts For 2025?

4 weeks from now

13 hours JPMorgan Chase & Co. (JPM) Is a Trending Stock: Facts to Know Before Betting on It Zacks X 14 hours Predicting Ares Capital’s Performance At 3.5% Fed Interest Rates Seeking …

thestockmarketnews.com

FAQs about How to Play JPMorgan Stock as Fed Hints Fewer Rate Cuts for 2025? Coupon?

Is JPM a risky stock if the Fed cuts rates?

The other risk to mention is that the Fed does not cut rates, or does so at a pace much slower than priced into the markets. However, even in that scenario, assuming that ROTCE stays at about 20%, which is above the cycle average, JPM will still deliver an earnings yield of about 8.8% against the current share price. ...

Will the Fed move more slowly & cautiously next year?

The Federal Reserve signaled that it will move more slowly and cautiously next year as it considers further rate cuts. The Fed cut its benchmark rate one-quarter of 1 percentage point on Wednesday, to between 4.25% and 4.5%, in line with economists’ expectations, despite measures of inflation moving up in recent months. ...

How much will the Fed cut monetary policy in 2025?

They now expect to cut rates by just 0.50% for the year, which would mean two 0.25% cuts in 2025. FOMC participants' assessments of appropriate monetary policy at the Dec. 18, 2024, meeting. Source: Federal Reserve. Data as of Dec. 18, 2024. ...

Will the Fed go further in 2025?

Markets tend to overprice rate cuts into markets, causing sharp pull backs when even the slightest hint of a change in policy occurs. The irony is that the Fed is far more likely to go further with policy action in 2025 than it expects, given where the labor market is headed.“ ...

Why did the stock market fall 3 percent?

Stocks slumped, the dollar soared and the cost of borrowing money rose on Wednesday, as the Fed dialed down expectations for interest rate cuts next year given the continued strength of the U.S. economy. The S&P 500 index dropped 3 percent, its biggest fall since the start of August. ...

Will the Fed cut its target rate another quarter-point?

Traders, though, are growing increasingly bullish on the prospect of another 25 basis point cut from the central bank when it meets for its policy meeting this month. Markets seen an 89% chance the Fed will trim its target rate another quarter-point, according to the CME FedWatch tool, up from 66% a week ago. ...