JPMorgan Chase: Fed rate cuts could hurt stocks and bond markets

BlockBeats News, on September 16, Kelly, chief global strategist at JPMorgan Asset Management, said that if people think the Fed cut rate this week is due to political pressure and is inconsistent with the Fed's forecast for the economy, the widespread expectation of interest rate cuts will increase the risk of stocks, bonds and the US dollar. Bond and stock investors on Wall Street have been cheering for the Fed's hope to resume rate cuts after a nine-month pause, but they should take a cautious stance after a recent rebound, Kelly wrote. "To some extent, the Fed's decision this week was seen as a surrender to political pressure, which adds new risks to the U.S. financial markets and the dollar," Kelly said. "There is a bubble in the market," and now loose policies are more likely to weaken demand rather than increase demand, "ultimately against stocks, bonds and the dollar." (Jin Shi)