Concerns over inflationary developments and expectations of action to be taken by the Federal Reserve have become increasingly worrisome. Many of the experts and analysts came forward to provide enlightenment so that market players can prepare.
JPMorgan, which is a major market player, also provided enlightenment. In its latest report, JPMorgan (NYSE: JPM) issued an expectation that the central bank will raise interest rates by 0.25% in the third quarter of next year and will continue to raise them by 25 basis points per quarter.
The ten -year inflation -adjusted yield or “actual yield” was at negative 1.12% based on Thursday’s findings. JP Morgan’s bank forecast for the first Fed rate hike seen is slightly more conservative than some other big banks such as Deutsche Bank (DE: DBKGn), which expects the first US hike as early as July 2022. So are the expectations of most market players.
JPMorgan economists expect U.S. economic growth. at an average of 3.5% in 2022, compared to 5.5% in 2021, and full employment will be achieved by mid -2022.
Inflation is also expected to slow in the coming quarter, with core prices projected to average 2.2% by the third quarter of 2022 compared to 4.2% in the fourth quarter of 2021.
Finally they noted that supply constraints in the sector appear to be easing and are expected to continue to decline in 2022.
