JPMorgan: Federal Reserve to Cut Interest Rates in September as Economic Recession Looms

Bob Michele, chief investment officer for fixed income at JPMorgan Chase & Co., said the Fed will start cutting interest rates in September as economic data shows the U.S. is headed toward a recession.

He expects inflation to be below 3% on a 3-year and 6-month annualised basis when the Fed starts cutting rates.

Michele said the pace of rate hikes had largely delivered an interest rate shock to the system, with the regional banking crisis part of the problem.

However, he said the Fed's tightening cycle is not over yet, with another "unnecessary" rate hike coming at the May meeting.

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