Fed Signals Cautious Approach to Easing Cycle, Says JPMorgan Strategist

According to BlockBeats, on September 19, Kerry Craig, a global market strategist at JPMorgan Asset Management, stated in a report that the Federal Reserve has indicated a more cautious approach to the easing cycle. Craig noted that Federal Reserve Chair Jerome Powell has effectively communicated by balancing the urgency of returning to a neutral interest rate with acknowledging the relatively stable economic state. Craig added that the focus has shifted more towards an employment-first approach rather than inflation. The scale of rate cuts may be less significant than the ultimate goal, which is to lower rates by 150 basis points by the end of 2025 and adjust the policy rate closer to the Fed's neutral view by 2026. Craig mentioned that if nominal growth and the easing cycle remain stable, both stocks and bonds should benefit.