JPMorgan Chase Asset Management: The Federal Reserve is expected to continue raising interest rates until inflation cools, as core PCE remains above 3%
Kelsey Berro, a fixed income portfolio manager at JPMorgan Chase Asset Management, stated that despite recent signals of slowing inflation and market expectations of only a modest 0.2% month-over-month increase in core CPI, the Federal Reserve remains cautious as core PCE inflation is still above 3%. Berro emphasized that a single data point will not determine the Federal Reserve's next move, and key economic data, including CPI, PPI, and employment reports, as well as the Jackson Hole Symposium, are expected in the coming weeks. The market continues to price in potential rate hikes, reflecting the Federal Reserve's possible strategy of implementing "preemptive rate hikes" amid persistent high inflation data and a stable labor market.
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