“Rate cuts could freeze economic growth due to hesitation from retirees and businesses”

Trump's call for the Fed to cut interest rates has sparked debate on the effectiveness of monetary policy in the context of a slowdown. JPMorgan strategist David Kelly questioned the strategy, pointing out that it has historically ineffective in stimulating economic growth and could harm retirees who rely on fixed income. Although the market 100% expects the Fed to cut interest rates in September, Kelly warns that economic responses may be delayed and policy uncertainty may freeze business activities. He urged clear stimulus measures and stressed the trade-off between overall growth and population welfare.