Fed Should Stop Raising Rates to Avoid Recession: JP Morgan Strategist

• JP Morgan Chase Asset Management Chief Global Strategist David Kelly has called on the Federal Reserve to stop raising interest rates to avoid tipping the economy into a recession.
• He predicted that the Fed will continue to raise interest rates beyond February, into their March and May meetings, bringing the benchmark rate to over 5%.
• Kelly suggests that the Fed has “won” its war against inflation, and that it is now time to focus on keeping the U.S. economy intact.

JP Morgan Chase’s Asset Management Chief Global Strategist David Kelly recently suggested that it is time for the Federal Reserve to stop hiking interest rates in order to keep the U.S. economy intact. In an interview with Bloomberg on Thursday, Kelly predicted that the Fed will continue raising interest rates beyond February, and into their March and May meetings, bringing the benchmark rate to over 5%.

Kelly believes that the Fed has already “won” its war against inflation, and should now focus on avoiding a potential recession. He noted that the economy may tip into recession if the Fed continues to raise interest rates – a risk that could have serious implications for the U.S. economy as a whole. Kelly suggested that the central bank should instead focus on nurturing economic growth and stability, rather than fighting inflation.

The analyst suggested that the Fed should look for other ways to combat inflation, such as fiscal policy, instead of relying solely on rate hikes. He noted that the central bank should consider using other tools, such as quantitative easing, to maintain price stability. This would help to ensure that the U.S. economy remains strong and stable, without risking a recession.

Overall, Kelly believes that it is time for the Federal Reserve to stop raising interest rates in order to keep the U.S. economy intact. He suggests that the central bank should focus on other tools, such as fiscal policy and quantitative easing, to maintain price stability, rather than relying solely on rate hikes. Doing so would help to ensure that the U.S. economy remains strong and stable, without risking a recession.