NEW YORK (Reuters) – JPMorgan Chase & Co (NYSE:) on Thursday cut its estimates of where the U.S. Federal Reserve will leave interest rates over the next two years, with just one hike this year and another in 2020.
The bank previously forecast two quarter-point federal funds rate hikes this year to a target range of up to 3 percent and another two increases in 2020, to 3.5 percent.
“With a Fed more tolerant, even welcoming, of an inflation overshoot, we see less near-term tightening in our forecast,” economist Michael Feroli wrote in a research note. “The more dovish policy path should allow the economy to continue growing faster than potential longer than previously projected.”
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