The Federal Reserve has set the table for rate cuts starting in June, according to David Kelly, chief global strategist for JPMorgan Asset Management.
“It sounds to me like June, September, December is what they are thinking — three rate cuts this year —provided the economy keeps growing,” he said in an interview with CNBC following the release of the Federal Reserve’s statement.
“There doesn’t seem to be, at the moment, a sign that the U.S. economy is going to keel over and fall into recession any time soon,” he added. “Until they see greater damage — or potential damage — to the economy given to the huge run up in the markets we’ve seen, they just see the balance of risk more being on the side of inflation being sticky than the economy falling into recession.”