EL7.AI
Central Banks•6 July 2026•
1 min read

JPMorgan Rules Out July Fed Rate Hike Amid Stable Labor Market

Key Facts

1Kelsey Berro of JPMorgan Asset Management ruled out a July rate hike and expects the Fed to stay on hold for the year.

Reflecting market expectations for a continued pause, Kelsey Berro, portfolio manager at JPMorgan Asset Management, has ruled out a Federal Reserve rate hike in the upcoming July meeting. According to reports, Berro believes the recent stable payrolls report is unlikely to sway the Fed's current stance, suggesting that interest rates will likely remain unchanged for the rest of the year. This assessment comes as the labor market appears resilient enough to avoid the need for immediate policy adjustments.

These projections coincide with mixed economic signals, as the Dallas Fed Manufacturing Index printed at 0 against a forecast of 2, while U.S. JOLTs Job Openings reached 7.594 million, exceeding the 7.3 million estimate per market data. Contextually, recent earnings reports from peers like Goldman Sachs and Morgan Stanley have shown stabilized net interest income, supporting the narrative that the financial sector has largely adjusted to the current high-rate environment.

Investors are now focused on the upcoming FOMC meeting on July 29, 2026, as a primary catalyst to confirm the monetary policy trajectory, especially after CB Consumer Confidence registered 91.2 in late June, missing the 94.4 forecast.