JP Morgan's analyst asks the Fed to stop the interest rate increases

JP Morgan's analyst asks the Fed to stop the interest rate increases

David Kelly-Asset Management Chief Global Strategist at JP Morgan Chase-said it was time that the Federal Reserve ends the interest rate increases if it wanted to keep the US economy intact.

After "won" her war against inflation, the analyst claimed that the central bank now runs the risk of plunging the economy into recession.

too many hikes

in a (n interview with Bloomberg On Thursday, Kelly predicted that the FED will increase interest rates beyond February and further into its meetings in March and May. These increases, which are forecast by 25 basis points, would bring the Fed's key interest rate to over 5 % - a level that Kelly is expecting from the Fed to the end of the year.

"The question is: Will the economy be strong enough to keep interest rates at this relatively high level?" asked Kelly.

The chairman of the US Federal Reserve, Jerome Powell, has repeatedly emphasized the commitment of the US Federal Reserve to slow inflation by continuing interest rate increases-even if this causes some . However, he has also found that the United States are ready to endure a tighter monetary policy due to the strength of the labor market.

also noticed Kelly that the economy remains "very little demographic growth" when "full employment". However, the savings rate remains low, since various "state alms" stimulate consumers to issue beyond their circumstances.

"What we certainly know is that the economy will grow slowly," he said. "If we stop increasing the volume so much, it will slow down consumer expenditure."

Together with the global strength of the dollar and the weak housing construction, Kelly sees a slowdown economy as a certainty. "I think we don't get more than 1 to 1.5 % growth at best - but we could still avoid recession."

The missions of the decision of the Fed

The decisions of the Federal Reserve are difficult to use the crypto industry-they affect the prices of digital assets and how. As such, analysts and executives Arthur Hayes and mike novogratz

The inflation report from December clocked on Thursday, which shows that the Fed's struggle pays off against rising prices.

The United Nations requested to set the interest rate in October, out of fear of leaving a global recession that affects developing countries.

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