JPMorgan Expects Interest Rate Hike in December

JPMorgan Chase forecasts that the U.S. Federal Reserve will raise interest rates by 25 basis points in December, following the central bank’s decision to hold rates steady at its July meeting. Prior to the July meeting, JPMorgan’s projections had indicated that the Federal Reserve would keep interest rates unchanged throughout 2026, with the first rate hike expected in the second half of 2027. Federal Reserve Chair Jerome Powell has left markets in suspense regarding how disagreements within the Federal Open Market Committee will be resolved. According to the CME Group’s FedWatch Tool, markets currently price in a 65% probability of a rate hike in September, down from approximately 81% before the monetary policy decision was announced.