JPMorgan Chase strategists warn Fed rate cuts may increase market risk

Kelly, chief global strategist at JPMorgan Asset Management, said that if the Fed cut this week is seen as a result of political pressure, it will increase the risk of stocks, bonds and the dollar. Kelly pointed out that although Wall Street investors are optimistic that the Fed may resume rate cuts, they should remain cautious after the near-term rebound and seek diversified investment. He believes that there is a bubble in the market and the current loose policy may weaken demand and be detrimental to the stock market, bond market and the US dollar.