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JPMorgan Warns Fed Rate Cut May Trigger Market Volatility
Summary: According to sources, JPMorgan strategist Mislaaf Matejka warned that a rate cut by the Fed due to economic weakness or political pressure could lead to turbulence in the stock, bond, and currency markets. Analysis by the bank based on data since 1980 shows that during rate-cutting cycles, the US dollar typically weakens, bond yields decline, ...
According to sources, JPMorgan strategist Mislaaf Matejka warned that a rate cut by the Fed due to economic weakness or political pressure could lead to turbulence in the stock, bond, and currency markets. Analysis by the bank based on data since 1980 shows that during rate-cutting cycles, the US dollar typically weakens, bond yields decline, and emerging market stocks perform relatively well. JPMorgan analyst Mike Wilson added that the stock market often anticipates policy shifts in advance, but a significant deterioration in employment data could hinder the US stock market rally. The S&P 500 index has risen by 5% this year, lower than the 21% increase in European stock markets.
