Bob Michele, CIO and global head of fixed income and commodities at JPMorgan Asset Management spoke with Bloomberg TV.
Says the Federal Reserve is signalling that it is willing to hurt the economy by prioritizing inflation-over-growth:
- They’re telling us that they’re prioritizing inflation over growth. And that means like the ECB, you’re willing to make the economy a casualty.
Says he still expects a Fed rate cut by the end of the year:
- If you have a Fed that’s being patient, not willing to cut and you have economic data that’s coming in hotter than expected, well, this is the Fed that promised us transitory and then within a couple of months changed their mind and started hiking rates. We think we’re going to see the same thing this time. They’re going to tell us that they’re going to keep rates higher for longer until inflation is at their target. But the magnitude of the slowdown we’re seeing across the board tells us that we’ll probably still be hitting recession around year end. And so they’ll be cutting rates by then.
This article was written by Eamonn Sheridan at www.forexlive.com. Source