TechFlow, June 30 — According to Jinshi Data, market expectations for Federal Reserve rate cuts are rising, but JPMorgan's London strategy team has cast doubt on this outlook.
The bank warned that the real reasons behind rate cuts may not benefit equities and could even trigger a "wrong type of easing," leading to ripple effects across markets. JPMorgan strategists expect a combination of scenarios—one where economic activity slows while inflation rebounds.
They noted that since 1980, the dollar typically weakens ahead of rate cuts and continues declining afterward, with bond yields falling in tandem. JPMorgan strategists said they anticipate the dollar will hit new lows and Treasury yields will keep falling in most cases.
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