JPMorgan Chase: It is expected that the Federal Reserve will cut interest rates at each meeting until January next year, and US bond prices are expected to continue to rise

Strategists at JPMorgan Chase, led by Jay Barry, believe that the price of U.S. Treasury bonds will continue to rise. They expect the Federal Reserve to decide on a rate cut at every FOMC monetary policy meeting from now until January 2026. The upper limit of the target range for the federal funds rate (i.e., policy interest rate) is expected to slide down to 3.0% in early next year. Economists at JPMorgan Chase predict that Trump's tariffs will cause a contraction in real GDP in the United States, revising their full-year real GDP growth forecast down to -0.3%, compared with previous expectations of an increase of 1.3%. By the end of 2025, they anticipate that yields on two-year and ten-year U.S Treasury bonds will fall to 2.7% and 3.65%, respectively; previously these were projected as being 3.65% and 4.15%.