JPMorgan analysts warn: Fed rate cuts may hurt stock and bond markets

Jinse Finance reported that Kelly, Chief Global Strategist at JPMorgan Asset Management, stated that if people believe the Federal Reserve's rate cut this week is due to political pressure and does not align with the Fed's economic forecasts, the widely expected rate cut will increase risks for stocks, bonds, and the US dollar. Kelly wrote that Wall Street's bond and stock investors have been cheering for the Fed to resume rate cuts after a nine-month pause, but after the recent rally, they should take a cautious stance and seek diversified investments. Kelly said: "To some extent, the Fed's decision this week is seen as a concession to political pressure, which adds new risks to US financial markets and the US dollar." "There is a bubble in the market," and the current easing policy is more likely to weaken demand rather than increase it, "ultimately unfavorable to the stock market, bond market, and the US dollar."