May 31, 2019 / 2:39 PM / a year ago

JPMorgan now sees two 2019 rate cuts after U.S.-Mexico tariff threat

NEW YORK, May 31 (Reuters) - JPMorgan Chase & Co, which previously saw an even chance the U.S. Federal Reserve would slash rates, on Friday said it now predicts two interest rate cuts by the end of the year.

The new outlook from JPMorgan is in line with futures market pricing and comes after President Donald Trump said on Thursday the United States will impose a 5% tariff on all goods coming from Mexico starting on June 10 until illegal immigration across the southern border is stopped.

The White House said the tariff could increase as high as to 25% by October, which JPMorgan said may require "much more" than a 0.50% reduction in the Fed's target rate. (Reporting by Trevor Hunnicutt and Richard Leong Editing by Chizu Nomiyama)

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