According to BlockBeats, David Kelly, Chief Global Strategist at JPMorgan Asset Management, stated in a recent CNBC interview that the weak employment report for August and other economic indicators suggest an intensifying slowdown in the U.S. economy. He noted that while the economy has not yet entered a recession, it is gradually decelerating. Kelly likened the current economic state to a turtle that has become nearly exhausted.
Kelly also expressed skepticism about the Federal Reserve's anticipated interest rate cuts, suggesting they would not effectively stimulate the overall economy. He observed that the stock market's rise reflects expectations of imminent rate cuts, but argued that this approach does not address the fundamental issues. He emphasized that rate cuts at this time would reduce interest income for retirees and send further signals of rate reductions to the market, leaving borrowers with little incentive to take on more debt. Kelly pointed out that historical trends throughout the 21st century demonstrate that rate cuts do not spur economic growth, citing the ineffectiveness of such measures following the financial crisis. He concluded by advising against relying on the Federal Reserve to rescue the economy.