JPMorgan Chase: Markets may price in no rate cuts from the Fed, downgrading emerging market currencies to “hold”

JPMorgan Chase & Co. cut its views on emerging market currencies and local interest rates after the U.S. reported a bigger-than-expected rise in consumer prices in March, leading financial markets to expect the Federal Reserve to delay a rate cut until September. "At this point, the likelihood that the Fed will not cut rates becomes sufficiently high that markets will reprice, pushing up risk-free rates and limiting the performance of emerging market currencies or the ability of emerging market rates to continue to resist increases," JPMorgan Chase & Co. said it had adjusted its weighting in emerging market FX to "hold" from "overweight" previously.