- JPMorgan strategist Jordan Jackson told CNBC’s “Closing Bell” that Fed cuts in January are not a foregone conclusion.
- Jackson urged investors to watch incoming economic data before pricing in rate cuts.
- The outlook for interest rates will be key for banking stocks, including JPM stock, via net interest margins and loan demand.
H2: JPMorgan strategist flags uncertainty around January rate cuts
On Dec. 8, 2025, Jordan Jackson, global market strategist at JPMorgan, told CNBC’s Closing Bell with Michael Santoli that markets should not assume the Federal Reserve will cut interest rates in January. Jackson said the timing and size of any easing remain dependent on fresh economic data and the Fed’s read of inflation and labor-market strength.
H3: Why investors should avoid fixing on a January cut
Jackson emphasized that although market-implied odds have shifted toward early easing, the Fed has consistently signaled a data-dependent approach. With core inflation measures and employment indicators still showing resilience this month, policymakers may delay cuts if they see downside risks to their inflation goals.
He advised investors to watch key data releases — such as monthly inflation reports and payrolls — that could reshape the Fed’s path and market expectations between now and the January meeting.
H3: What this means for JPM stock and the bank sector
Interest-rate expectations are a major driver for large-bank shares. Higher policy rates can boost banks’ net interest margins, supporting profits, while cuts tend to compress margins and pressure trading revenues.
For JPM stock specifically, Jackson’s warning translates into a push for investors to prepare for scenarios in which rates remain elevated longer than priced in. That could sustain net interest income for lenders but also raise concerns around loan growth and credit conditions if borrowing costs stay high.
H4: Market implications and practical steps for investors
- Monitor Fed communications and market-implied rate paths via Fed funds futures.
- Track inflation indicators (CPI, PCE) and labor-market releases for signals on monetary-policy timing.
- Assess bank earnings for guidance on net interest margins and loan demand trends tied to rate expectations.
H4: Bottom line
Jordan Jackson’s appearance underscored a familiar message from many strategists and policymakers: the Fed’s decision on rate cuts is conditional and not predetermined. For investors in JPM stock and the broader financial sector, that means staying attentive to incoming data and Fed commentary rather than relying solely on current market-implied cut probabilities.
Jackson’s comments, delivered on CNBC’s Closing Bell, reflected the ongoing market debate as the Fed’s January meeting approaches and economic prints are released over the coming weeks.
Image Referance: https://www.cnbc.com/video/2025/12/08/fed-cuts-in-january-are-not-a-foregone-conclusion-says-jpmorgans-jordan-jackson.html
