J.P. Morgan slashes U.S. Q2 GDP outlook to 1%


NEW YORK, May 24 (Reuters) - J.P. Morgan on Friday more halved its previous estimate on U.S. economic growth in second quarter to 1.00% following data that showed a fall in durable goods orders in April.

The bank now sees it as basically a coin toss for the Federal Reserve to raise or cut interest rates, compared with its previous call for just a rate increase.

"We had previously expected the next move from the Fed would be a hike, albeit at the very end of our forecast horizon in late 2020," J.P. Morgan economist Michael Feroli wrote in a research note. "We now see the risks of the next move as about evenly distributed between a hike and a cut."

(Reporting by Richard Leong Editing by Bill Trott)

((richard.leong@thomsonreuters.com; +1 646 223 6313; Reuters Messaging: richard.leong.thomsonreuters.com@thomsonreuters.net; Twitter @RichardLeong2))

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