J.P. Morgan sees two additional Fed cuts in 2025, one more in 2026

J.P. Morgan Global Research’s Fed outlook calls for two further rate cuts in 2025 followed by one in 2026, citing cooling inflation and softer labor data. The team notes a shallow easing cycle is most likely, with policy uncertainty persisting into early 2026. Strategists emphasize tracking core PCE and labor rebalancing as key triggers for timing. The view frames risk assets as sensitive to growth data while supporting duration on bouts of volatility.