JPMorgan Chase & Co’s (NYSE: JPM) stock has been rapidly rising and is on track to continue the trend in 2025. The Q4 2024 results were not only strong, but the conditions driving bank results remain in place and are likely to remain so through year’s end. Among the driving forces are higher-for-longer interest rates and the diminishing outlook for Fed rate cuts this year. At best, the Fed will deliver a single 25 basis point cut by year’s end, keeping the average rate above 4% through year’s end, a good 50 basis points or more above the forecasts at the start of the reporting period. The takeaway is that higher interest rates drive robust interest income, and the underlying banking businesses are also strong.
