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JPMorgan Asset Says Markets Are Right to Bet Fed Cuts Are Coming
A US recession is a virtual certainty and the Federal Reserve may lower interest rates by the third quarter as growth loses momentum, according to JPMorgan Asset Management. “The market is right to be penciling in cuts,” said Seamus Mac Gorain, head of global rates in London. “Inflation is too high and it will take a recession to bring it back down,” he said, adding that US banking woes “have only made a recession more likely.” Mac Gorain, who favors Treasuries, is siding with swaps traders who predict that the Fed will execute a policy pivot as soon as September to counter slowing growth. But the US ... (full story)