JPMorgan: The Federal Reserve's mistake in cutting interest rates is approaching, and the US stock, bond, and currency markets may face a massive shock.

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Odaily News The market's expectation for a rate cut by The Federal Reserve (FED) is on the rise, but JPMorgan's London strategy team has poured a bucket of cold water on this optimism. The bank warns that the true reasons behind a rate cut may not be favourable for the stock market and could even lead to a "misguided type of easing," triggering a chain reaction in the market. JPMorgan's strategists expect a combination of the first and third scenarios in the future—namely, a slowdown in economic activity while inflation rises. They point out that since 1980, the dollar typically weakens before a rate cut and continues to fall afterwards. Bond yields also decline as a result. JPMorgan's strategists indicate that they expect the dollar to hit new lows in most cases, and US Treasury yields to continue to decline. (Jin10)

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Youduoduovip
· 06-30 11:55
Odaily News The market's expectations for interest rate cuts by The Federal Reserve (FED) are rising, but JPMorgan's London strategy team has poured cold water on this. The bank warned that the true reasons behind the interest rate cuts may not be favourable for the stock market and could even lead to a "wrong type of easing," triggering a chain reaction in the market. JPMorgan's strategists expect that the future will be some combination of the first and third scenarios—namely, a slowdown in economic activity while inflation rises. They pointed out that since 1980, the usual situation
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