Michele Says Three Fed Dissenters Signal Continued Pressure on Rates
Bob Michele of J.P. Morgan Asset Management said the Federal Reserve’s decision on Wednesday to stay on hold was opposed by three members, suggesting that upward pressure on rates may persist. “The three dissenters in the most recent statement are the more important part,” said Michele, chief investment officer and global head of fixed income at J.P. Morgan Asset Management. “It shows they’re beginning to move toward tightening policy.” “The dissents are what matter most,” said Jim Bianco, president of Bianco Research. Because Kevin Warsh is not providing forward guidance, events such as the post-meeting press conference now reflect more of the chair’s personal view than the views of the committee as a whole. (Bloomberg)