David Kelly, chief global strategist at JP Morgan Chase, said it was time for the Federal Reserve to stop raising interest rates. If you want to keep the US economy intact
ingive an interviewwith Bloomberg Kelly predicts that the Fed will continue to raise interest rates after February and at its March and May meetings. These hikes, projected at 25 basis points, will bring the Fed’s benchmark interest rate above 5%, the level the Fed is expected to hold through the end of the year.
“The question is will the economy be strong enough to keep interest rates relatively high?”
Federal Reserve Chairman Jerome Powell It has reiterated its commitment to slowing inflation through continued interest rate hikes. Even if it causes economic pain. However, he also noted that The strength of the labor market makes the United States ready to withstand tighter monetary policy
Likewise, Kelly noted that the economy still has “Full employment”, however, the savings rate remains low due to The government incentivizes consumers to overspend.
Kelly sees a slowing economy as a sure thing. “I think we can grow within 1 to 1.5% at best. But we can still avoid a recession.”
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