JPMorgan’s David Kelly says Fed should hold rates as inflation cools
David Kelly, chief global strategist at JPMorgan Asset Management, said the Federal Reserve should leave interest rates unchanged and predicted that inflation would gradually ease as more evidence emerges that a persistent wage-price spiral will not develop. Kelly spoke Wednesday after the release of the U.S. consumer price index for July. “They absolutely should stay on hold, and I actually think they will,” he said. The report showed moderate core inflation in the United States, while U.S. Treasuries held onto their gains after the data was released. “Inflation in the U.S. is basically Teflon inflation—it doesn’t stick,” Kelly said.
David Kelly, chief global strategist at JPMorgan Asset Management, said the Federal Reserve should leave interest rates unchanged and predicted that inflation would gradually ease as more evidence emerges that a persistent wage-price spiral will not develop.
Kelly spoke Wednesday after the release of the U.S. consumer price index for July. “They absolutely should stay on hold, and I actually think they will,” he said.
The report showed moderate core inflation in the United States, while U.S. Treasuries held onto their gains after the data was released.
“Inflation in the U.S. is basically Teflon inflation—it doesn’t stick,” Kelly said.
Kelly spoke Wednesday after the release of the U.S. consumer price index for July. “They absolutely should stay on hold, and I actually think they will,” he said.
The report showed moderate core inflation in the United States, while U.S. Treasuries held onto their gains after the data was released.
“Inflation in the U.S. is basically Teflon inflation—it doesn’t stick,” Kelly said.