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JPMorgan: Incorrect Fed Rate Cut Imminent, US Stocks and Bonds Face Tremors
Summary: Contrary to popular belief, JPMorgan's London strategy team has warned that the market's high expectations for a Fed rate cut may not bode well for the stock market. They caution that the rate cut could lead to a 'wrong type of easing' and trigger a chain reaction in the market. JPMorgan's strategists predict a combination ...
Contrary to popular belief, JPMorgan's London strategy team has warned that the market's high expectations for a Fed rate cut may not bode well for the stock market. They caution that the rate cut could lead to a 'wrong type of easing' and trigger a chain reaction in the market. JPMorgan's strategists predict a combination of scenarios where economic activity slows down but inflation rises. They note that historically, the US dollar tends to weaken before a rate cut and continues to decline afterwards, along with a decrease in bond yields. JPMorgan's strategists anticipate that in most cases, the US dollar will hit new lows and US bond yields will continue to fall.
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Link: JPMorgan: Incorrect Fed Rate Cut Imminent, US Stocks and Bonds Face Tremors [Copy]
