J.P.Morgan predicts a 25-basis-point interest rate cut by the Fed in September due to labor market weakness and uncertainty over Trump’s Fed nomination. The brokerage now expects four quarter-point cuts before a pause.

Trump nominates Stephen Miran to the Fed board, potentially influencing monetary policy. Confirmation before September meeting uncertain, could lead to internal divisions within the committee.

Analysts anticipate three dissents if Miran is confirmed, potentially intensifying Fed divisions. August jobs data may sway Fed’s decision, with higher unemployment rate justifying a larger cut.

Fed Governor Christopher Waller emerges as frontrunner to succeed Powell as Fed Chair, likely welcomed by financial markets. Waller’s appointment could reduce uncertainty around Fed’s response to economic data.

Traders now price in a high chance of a rate cut in September, with CME Group’s FedWatch tool showing an 89.2% probability. This reflects increased expectations of a rate cut compared to previous week.

Read more at Yahoo Finance: J.P.Morgan brings forward Fed rate cut forecast to September