JPMorgan Predicts Fed Rate Hike in Q3 2027, Diverging from Crypto Bullish Rate-Cut Expectations

Source: CryptoNewsNet Original Title: JPMorgan sees Fed’s next move an interest-rate increase, crypto bulls talk about cuts Original Link: JPMorgan, the world’s largest bank by market capitalization, predicted on Friday that the U.S. Federal Reserve’s next interest-rate move is likely to be an increase and unlikely to occur before the third quarter of 2027, bucking some crypto analysts’ outlook for lower borrowing costs sooner.

The bank expects the Fed to hold rates steady with a 3.5%-3.75% target this year and raise by 25 basis points in Q3 2027, according to Reuters.

This stance stands in stark contrast to pricing in the CME’s fed fund futures, which show traders positioned for two 25 basis-point rate cuts this year. Many crypto analysts also expect borrowing costs to decline, which would incentivize greater risk-taking across the economy and financial markets. Bitcoin, often considered a pure play on fiat liquidity, is more sensitive to interest-rate expectations than traditional assets.