Dow Jones News: The Federal Reserve is expected to start cutting interest rates ahead of schedule in September.

According to the US CPI report released on Tuesday, strategists at JPMorgan predict that the Fed will start cutting rates earlier, moving the timeline from October to September. JPMorgan still expects the Fed to cut rates a total of six times, by 25 basis points each time, reaching an ultimate rate of 3%. Specifically, they project three rate cuts this year, one each quarter next year until the end of September; their previous expectation was two rate cuts this year and four next year. JPMorgan strategists Oscar Munoz and Gennadiy Goldberg stated in their report, "Given signs of weakening in the labor market, we believe today's inflation data may prompt some Fed officials who are still on the fence about the next policy path to change their views." They expect that Fed Chairman Powell will "convey a predisposition towards monetary easing in September" in his speech at the Jackson Hole next week. The JPMorgan strategy team also adjusted their forecast for the 5-year Treasury bond yield at the end of 2025 from 3.70% to 3.65%.