The Fed may cut rates as soon as year-end as a recession hits the US economy, according to J.P. Morgan Asset Management's CIO.
Such a move would be similar to how the Fed dropped its "transitory" call on inflation and started raising rates, he said.
"They're going to tell us that they're going to keep rates higher for longer until inflation is at their target.
"I think this time for them to cut rates, they're going to have to see unemployment go up.
So it's possible that they may actually tip the economy into recession first before they start cutting rates, which would be something new for them.
Persons:
we'll, Bob Michele, Michele, J.P, Morgan Asset's Michele
Organizations:
Morgan, Fed, Service, Federal Reserve, Morgan Asset Management, Bloomberg Television, Bloomberg
Locations:
Wall, Silicon