JPMorgan issues stark warning on Fed interest-rate cut

On Bloomberg Businessweek Daily, hosts discuss the upcoming Fed meeting expected to result in rate cuts, alongside updates on the murder case of Charlie Kirk and insights from Katy Kaminsky on market impacts.

Editor’s Note: This episode is significant as it covers critical economic decisions by the Federal Reserve that could influence market trends, alongside important legal developments in a high-profile murder case.

Sree Kochugovindan, a senior economist, predicts that the Federal Reserve will implement three rate cuts this year due to a weakening labor market. She anticipates a slower pace of easing in 2026 if further cuts occur.

Editor’s Note: This insight is significant as it reflects the Federal Reserve's response to economic conditions, which can impact borrowing costs and overall economic growth. Understanding these predictions helps investors and businesses prepare for future financial landscapes.

Mahjabeen Zaman from ANZ highlights that the US growth story remains strong, indicating that the Federal Reserve may need to see more inflation before making aggressive rate cuts.

Editor’s Note: This insight is important as it reflects the current economic climate and the Federal Reserve's approach to monetary policy, which can impact markets and consumers alike.

Pimco suggests that the Federal Reserve's potential interest-rate cuts could be enhanced by implementing 'Operation Mortgage Twist' to lower mortgage costs and stimulate the housing market.

Editor’s Note: This is significant as it could lead to more affordable housing options for Americans, potentially boosting the economy and helping those struggling with high mortgage rates.

JPMorgan has downgraded Neumora, highlighting concerns about potential negative news from ongoing trials. This decision reflects the bank's cautious outlook on the company's future.

Editor’s Note: This downgrade is significant as it may impact investor confidence and the stock performance of Neumora. Ongoing trials are crucial for the company's success, and any negative developments could lead to further financial challenges.

Emerson shared key insights on strategic transformation at the JPMorgan U.S. All Stars Conference, highlighting innovative approaches and future plans.

Editor’s Note: This conference is significant as it showcases Emerson's commitment to evolving its strategies in a competitive market, which could influence industry trends and investor confidence.

This week's Fed rate cut may not significantly lower mortgage rates, contrary to expectations. Homebuyers hoping for relief might be disappointed as the impact on rates could be minimal.

Editor’s Note: Understanding the Fed's decisions is crucial for homebuyers. If rate cuts don't lead to lower mortgage rates, it could affect affordability and the housing market, making it harder for buyers to secure homes.

The Federal Reserve is anticipated to lower interest rates, which could positively impact the stock market. This decision is significant for investors and the economy.

Editor’s Note: Understanding the Fed's decision on interest rates is crucial as it influences borrowing costs, consumer spending, and overall market performance. A rate cut could stimulate economic growth and boost investor confidence.

Federal Reserve officials are preparing to make a decision on interest-rate cuts after months of debate. This decision is overshadowed by political issues, including a legal battle over the Fed's independence and a succession drama.

Editor’s Note: Understanding the Federal Reserve's decision on interest rates is crucial as it impacts the economy. The ongoing political drama adds complexity to their decision-making process, highlighting the tension between economic policy and political influence.

US Treasuries rose as stronger retail sales did not stop expectations for the Federal Reserve to start cutting interest rates to help the struggling labor market.

Editor’s Note: This is significant because it indicates that despite positive retail sales, the Fed may prioritize supporting employment over inflation, which could lead to lower borrowing costs and stimulate economic growth.

Equifax announced a strategic shift towards offense at the JPMorgan U.S. All Stars event, highlighting its commitment to innovation and growth in the financial sector.

Editor’s Note: This shift is significant as it indicates Equifax's proactive approach to adapting to market changes and enhancing its services, which could lead to improved customer experiences and business performance.

Scott Chronert from Citi predicts that the Federal Reserve's rate cuts will lead to increased volatility in the US equity market, followed by a rally by year-end.

Editor’s Note: This is significant as it suggests that investors may see opportunities for growth in the stock market, especially after a period of uncertainty. Understanding these predictions can help investors make informed decisions.

Beijing announced that TikTok's US app will utilize a Chinese algorithm. This comes as Donald Trump extends the deadline for a potential shutdown of the platform, indicating ongoing negotiations with China.

Editor’s Note: This development is significant as it highlights the complexities of international relations and technology. The use of a Chinese algorithm in a US app raises concerns about data privacy and security, while the extended deadline suggests that a resolution may be on the horizon.

Bank of America predicts that gold prices could reach $4,000 per ounce by the second quarter of 2026, suggesting further growth potential after recent record highs.

Editor’s Note: This prediction is significant as it indicates a bullish outlook on gold, which could impact investors and the commodities market. Understanding these trends can help investors make informed decisions.

The U.S. government has ordered Delta and Aeromexico to end their partnership, which allowed them to coordinate flight pricing and schedules. This decision follows claims from U.S. Transportation Secretary Sean Duffy that Mexico is treating U.S. airlines unfairly.

Editor’s Note: This matters because the dissolution of this partnership could impact flight options and prices for travelers. It highlights ongoing tensions between U.S. and Mexican airlines, potentially affecting competition and consumer choice in the aviation market.

Lei Qiu, CIO at AllianceBernstein, discusses the expanding adoption of AI and the opportunities it presents, emphasizing the need for caution. She shares insights on Bloomberg Tech.

Editor’s Note: This discussion is significant as it highlights the growing role of AI in various sectors and the balance between embracing innovation and exercising caution. Understanding these dynamics can help businesses navigate the evolving landscape.

The FDA has issued over 100 letters to Hims & Hers and other weight loss drugmakers, warning them to stop using false and misleading advertising. This action highlights concerns about the integrity of marketing practices in the weight loss industry.

Editor’s Note: This matters because misleading advertising can lead consumers to make uninformed health decisions. The FDA's intervention aims to protect public health and ensure that companies provide accurate information about their products.

ServiceNow is set to open an AI hub in West Palm Beach, Florida, creating 850 new jobs. This initiative is part of a new tower project developed by Stephen Ross.

Editor’s Note: This expansion highlights ServiceNow's commitment to growing its AI capabilities and workforce, which is significant for the local economy and the tech industry in Florida.