Major brokerages, including Goldman Sachs and Morgan Stanley, ​expect the U.S. ⁠Federal Reserve to deliver its next interest-rate cut in ‌June, while J.P. Morgan sees the next move as a hike ​in 2027.

U.S. job growth unexpectedly accelerated in January and the unemployment rate ​fell to ​4.3%, signs of labor market stability that could give the central bank room to keep interest rates unchanged ⁠for some time while policymakers monitor inflation.

Following the jobs report, Citigroup pushed back its expectation for the Fed's first rate cut of the year to April, having previously forecast in ​March.

The ‌Fed will keep ⁠rates unchanged ⁠through Chair Jerome Powell's term ending in May, but could cut immediately ​afterward in June, a Reuters poll ‌showed, with economists warning that policy under ⁠his likely successor, Kevin Warsh, could become too loose.

Traders are betting on a more than 94% chance for the Fed to keep rates unchanged at its March policy meeting, according to the CME FedWatch tool.

 

(Compiled by the Broker ⁠Research team in Bengaluru; ​Editing by Anil D'Silva, Maju Samuel and Arun Koyyur)