Off The Wire
J.P. Morgan slashes U.S. second quarter GDP outlook to 1%
NEW YORK (Reuters) - J.P. Morgan on Friday more halved its previous estimate on U.S. economic growth in second quarter to 1.00% following data that showed a fall in durable goods orders in April.
The bank now sees it as basically a coin toss for the Federal Reserve to raise or cut interest rates, compared with its previous call for just a rate increase.
“We had previously expected the next move from the Fed would be a hike, albeit at the very end of our forecast horizon in late 2020,” J.P. Morgan economist Michael Feroli wrote in a research note. “We now see the risks of the next move as about evenly distributed between a hike and a cut.”
Reporting by Richard Leong; Editing by Bill Trott