Forecasting the Fed’s Forecasts

In this J.P. Morgan Asset Management podcast, Chief Strategist David Kelly discusses the upcoming FOMC meeting and its potential impact on interest rates. He notes the shifting market expectations for a rate cut, influenced by Fed communications and economic data. Kelly reviews economic projections for growth, unemployment, and inflation, anticipating the Fed's Summary of Economic Projections (SEP). He expects a rate cut but also acknowledges divisions within the Fed, which could lead to dissents. Kelly also touches on the potential market reactions to the Fed's decision, advising investors to prepare for possible volatility depending on the extent of any dissents within the committee.