J.P. Morgan no longer predicts the Fed will cut interest rates this year, and forecasts a rate hike in 2027.

JPMorgan Chase strategists and economists no longer expect the Federal Reserve to cut interest rates this year, and anticipate an increase next year, based on the December employment data released last Friday. The team, including Michael Feroli, Phoebe White, and Jay Barry, wrote in a report on January 9, "We now expect the Fed to keep rates unchanged throughout 2026, but given the market's unwillingness to rule out the possibility of labor market weakness and the focus on the competition for the Fed chair, additional front-end premiums may continue for a few more months."