Express
J.P. Morgan strategist: U.S. economic growth slowing gradually, Fed rate cuts unlikely to boost growth
Summary: In a recent interview with CNBC, J.P. Morgan Asset Management's Chief Global Strategist David Kelly stated that the lackluster August jobs report and other economic data indicate a worsening softness in the U.S. economy. While not in a recession, the economy is slowing down gradually. Kelly believes that the expected rate cuts by the Federal ...
In a recent interview with CNBC, J.P. Morgan Asset Management's Chief Global Strategist David Kelly stated that the lackluster August jobs report and other economic data indicate a worsening softness in the U.S. economy. While not in a recession, the economy is slowing down gradually. Kelly believes that the expected rate cuts by the Federal Reserve will not be able to stimulate overall economic growth. Despite the market's anticipation of rate cuts, Kelly argues that this will not address the fundamental issues. He warns that cutting rates now will reduce interest income for retirees and send more signals of rate cuts to the market, giving borrowers no reason to borrow more. History has shown that rate cuts do not necessarily stimulate economic growth, as seen after the financial crisis. Kelly concludes by cautioning against relying on the Fed to rescue the economy.
Tags:
Link: J.P. Morgan strategist: U.S. economic growth slowing gradually, Fed rate cuts unlikely to boost growth [Copy]
