A top-level executive at banking titan JPMorgan Chase warns that the US economy is slowing way down.
In a new interview on CNBC Television, JPMorgan Asset Management’s chief global strategist, David Kelly, says that the lackluster August jobs report and other economic data indicate a sluggish US economy that’s worsening.
[adinserter block="1"]“What’s going on is the economy is not in a recession yet, but it’s slowing, slowly. And it’s very consistent across all the data that just shows this economy – it was always a bit of a tortoise – is now a tortoise that’s pretty much out of breath.”
Kelly also believes that the expected Fed rate cuts due to worsening job data and other factors will not stimulate the overall economy.
“I see the market is up today. That’s obviously reflecting the fact that we think we’re going to get some rate cuts out of this, but that’s not going to fix anything. The most important thing that the administration needs to realize is, if you cut rates here, you’re going to cut the interest income of retirees, you’re going to tell people that more rate cuts are coming. So why borrow? Let’s wait and see.
The whole history of the 21st century is: rate cuts don’t stimulate growth. They didn’t in any way after the Great Financial Crisis. Don’t look to the Fed to bail out the economy.”
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