🔥⚠️⚡FED Rate Cuts Could Backfire, Warns JPMorgan 🔥⚡⚠️
Rising concerns over upcoming Fed rate cuts are shaking market confidence.
According to JPMorgan’s London team, the reasons behind a potential rate cut may not support stock market growth—and could even trigger negative reactions.
🔍 Three Scenarios Outlined by JPMorgan:
Economic Slowdown: A rate cut due to weak growth could spook markets.
Goldilocks Scenario: Steady growth with tame inflation—ideal, but unlikely.
Stagflation Pressure: Inflation rises while growth slows—a risky combo.
📉 Their Base Case: A mix of scenarios 1 & 3—slowdown + persistent inflation.
👉 Outcome? Possible investor disappointment and more market volatility.
💱 Historical Trend:
Since 1980, the dollar weakens before & after a rate cut, and bond yields drop.
JPMorgan expects both trends to continue, with the dollar likely hitting new lows.
Key Takeaway:
A Fed rate cut isn't always bullish—especially when driven by weak economic signals. Stay cautious.