JPMorgan: The Federal Reserve is still expected to cut interest rates, but possibly in January.

Jefferies' Mohit Kumar stated in a report that the Federal Reserve is still in an accommodative mode, despite the slightly hawkish tone of the latest Federal Open Market Committee meeting minutes. The global economist said, "Even if the Fed skips December, we expect them to ease policy in January." The Federal Reserve will react based on data, and Jefferies expects the importance of employment data to outweigh inflation in the coming months. Kumar said, "Our baseline assumption remains that employment will modestly slow down, with the unemployment rate rising to 4.5%." He added that this scenario would align with the Fed further loosening policy and pushing interest rates towards a neutral level. The neutral policy rate is an estimated level that neither stimulates nor restricts the economy.