JP Morgan: Miran nominated as Federal Reserve Governor to increase the possibility of a rate cut in September.

J.P. Morgan said that President Trump's nomination of ally Stephen Miran as a Federal Reserve Board member has increased the likelihood of a rate cut next month. Chief U.S. economist Michael Feroli wrote in a research report that current Chairman Jerome Powell's risk management considerations at the meeting may no longer be limited to balancing employment and inflation, and the path of least resistance is to move forward the timing of the next 25 basis point rate cut to September. In a very unlikely scenario, if Miran were to become a board member before the next meeting, this could mean there would be three dissenters, which is quite a large number. Christopher Waller is a highly respected policy maker who represents continuity, and if he were to be nominated, the market is likely to cheer. J.P. Morgan continues to expect three more rate cuts of the same size at the following three meetings, followed by an indefinite pause.