JPMorgan Asset Says Markets Are Right to Bet on US Rate Cuts
- Fed may lower rates by third quarter as US growth slows
- Recession is needed to bring inflation back down: Mac Gorain
A US recession is a virtual certainty and the Federal Reserve may lower interest rates by the third quarter as growth loses momentum, according to JPMorgan Asset Management.
“The market is right to be penciling in cuts,” said Seamus Mac Gorain, head of global rates in London. “Inflation is too high and it will take a recession to bring it back down,” he said, adding that US banking woes “have only made a recession more likely.”