Strategists from JPMorgan have voiced concerns that the much-awaited Federal Reserve interest-rate cuts might not be as beneficial for stocks as investors hope.
What Happened: JPMorgan strategists, led by Mislav Matejka, observed a growing anticipation of interest rate cuts from the Fed. However, they caution that the reasons behind these cuts might not bode well for stocks, according to a MarketWatch report.
The strategists outlined three possible scenarios for the rate cuts. The first is a situation where the Fed cuts rates due to a clear weakening of economic activity. The second scenario, referred to as the “Goldilocks” case, features robust growth alongside mild inflation, with no strain on consumer purchasing power. The third scenario involves rate cuts despite emerging inflation, possibly due to pressure from the U.S. administration for lower rates.
The strategists predict a blend of the first and third scenarios, where activity is slowing but inflation is on the rise. They caution that investors might …
Full story available on Benzinga.com
Strategists from JPMorgan have voiced concerns that the much-awaited Federal Reserve interest-rate cuts might not be as beneficial for stocks as investors hope.
What Happened: JPMorgan strategists, led by Mislav Matejka, observed a growing anticipation of interest rate cuts from the Fed. However, they caution that the reasons behind these cuts might not bode well for stocks, according to a MarketWatch report.
The strategists outlined three possible scenarios for the rate cuts. The first is a situation where the Fed cuts rates due to a clear weakening of economic activity. The second scenario, referred to as the “Goldilocks” case, features robust growth alongside mild inflation, with no strain on consumer purchasing power. The third scenario involves rate cuts despite emerging inflation, possibly due to pressure from the U.S. administration for lower rates.
The strategists predict a blend of the first and third scenarios, where activity is slowing but inflation is on the rise. They caution that investors might …
Full story available on Benzinga.com
Strategists from JPMorgan have voiced concerns that the much-awaited Federal Reserve interest-rate cuts might not be as beneficial for stocks as investors hope.
What Happened: JPMorgan strategists, led by Mislav Matejka, observed a growing anticipation of interest rate cuts from the Fed. However, they caution that the reasons behind these cuts might not bode well for stocks, according to a MarketWatch report.
The strategists outlined three possible scenarios for the rate cuts. The first is a situation where the Fed cuts rates due to a clear weakening of economic activity. The second scenario, referred to as the “Goldilocks” case, features robust growth alongside mild inflation, with no strain on consumer purchasing power. The third scenario involves rate cuts despite emerging inflation, possibly due to pressure from the U.S. administration for lower rates.
The strategists predict a blend of the first and third scenarios, where activity is slowing but inflation is on the rise. They caution that investors might …Full story available on Benzinga.com Read Morebenzinga neuro, bond yield, Donald Trump, Fed Rate Cuts, Jerome Powell, JPM, News, JPM, US46625H1005, News, Benzinga News
