JP Morgan raises odds of US recession by year end to 35% from 25%: Report | World News – Business Standard

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Fears of a U.S. recession following a weaker-than-expected July jobs report and an unwinding of yen-funded carry trades sparked a sharp sell-off in global equities earlier this week

(Photo: Bloomberg)

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JPMorgan has raised the odds of a US recession by the end of this year to 35 per cent from 25 per cent probability earlier, citing easing labor market pressures.

Fears of a US recession following a weaker-than-expected July jobs report and an unwinding of yen-funded carry trades sparked a sharp sell-off in global equities earlier this week.

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Markets are currently pricing a 100 per cent chance of a 50 basis points interest rate cut in September by the Federal Reserve, according to CME’s FedWatch tool.

“US wage inflation is now slowing in a manner not seen in other DM economies,” economists at the Wall Street brokerage, said in a note on Wednesday.