The banking giant had predicted a rate hike in June, but revised its projection after strong data on January retail sales and consumer prices, according to a Reuters report. More aggressive rhetoric from some Fed officials also played a role in the decision.
“We are pulling forward our expectations for the next Fed rate hike from June to May; we continue to look for two hikes this year, in May and September,” Michael Feroli, a JPMorgan economist, wrote in a research note.
The Fed held interest rates steady at its meeting earlier this month, citing a desire to see a stronger labor market and a return to 2% inflation before enacting a hike.
Fed announces interest rate decision
JPMorgan is predicting that the Federal Reserve’s next interest-rate hike will come in May.