JPMorgan anticipates the Federal Reserve will initiate rate cuts in December, which could weaken the U.S. dollar and alter market expectations. This potential shift is causing traders to reevaluate bank earnings and rate differentials. While bank stocks might gain from reduced funding costs, they could also face challenges from potential net interest margin compression.
Additionally, holiday retail sales are projected to grow at a slower rate, with online spending outpacing traditional retail. Retail margins and global supply chains are also under pressure due to ongoing tariff uncertainties.
JPMorgan Forecasts December Fed Rate Cuts, Impacting Dollar and Bank Stocks
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