JPMorgan Chase: Fed Rate Cut Could Hurt Stock and Bond Markets

BlockBeats News, September 16th, JPMorgan Asset Management's Chief Global Strategist Kelly stated that if people believe the Fed's rate cut this week was due to political pressure and diverged from the Fed's economic outlook, then the widely anticipated rate cut would increase the risks to stocks, bonds, and the dollar.

Kelly wrote that Wall Street's bond and stock investors have been cheering for the Fed to resume rate cuts after a nine-month pause, but after the recent rebound, they should take a cautious stance and seek diversified investments.

Kelly said, "To some extent, the Fed's decision this week is seen as a capitulation to political pressure, adding new risks to the U.S. financial markets and the dollar." "There is a market bubble," and now the accommodative policy is more likely to weaken demand rather than boost it, "ultimately unfavorable to the stock market, bond market, and dollar." (FXStreet)