JPMorgan Sees Five Fed Scenarios Ahead Of Wednesday Rate Decision

According to CNBC, JPMorgan's trading desk outlined five possible outcomes for the Federal Reserve's Wednesday policy decision and said the S&P 500 could move sharply depending on the outcome and Chairman Kevin Warsh's messaging. The bank said a no-hike decision could push the S&P 500 down 1.25% to 1.75%, while a 25 basis point hike with no guidance could lift the index 0.25% to 0.75%. JPMorgan said a 25 basis point hike that removes 2025 eases could send the S&P 500 up 0.50% to 1%, while a hike paired with a higher R-star could pull it down 0.25% to 1%. The bank said a 25 basis point hike accompanied by a warning that the fed funds rate needs to be materially higher could send the S&P 500 down 1% to 2%.