J.P. Morgan Strategist: U.S. Economic Growth is Gradually Slowing, Does Not Believe Fed Rate Cuts Will Fuel Growth

On September 6th, David Kelly, the Chief Global Strategist of JPMorgan Asset Management, stated in a recent interview with CNBC that the weak August jobs report and other economic data suggest that the weakening trend of the US economy is intensifying. "Although the current economy is not in a recession, it is gradually slowing down. All data consistently show that this already stumbling economy - like a tortoise always moving slowly forward - is now almost exhausted." Kelly also believes that given the deterioration of the job market data, the Fed's expected rate cut will not be able to boost the overall economy. "I see today's stock market rise, which clearly reflects the market's expectation of an imminent rate cut. However, this does not solve the fundamental problem. The government needs to realize that if they cut rates now, it will reduce the interest income of retirees while sending more rate cut signals to the market. In that case, borrowers have no reason to borrow more money. The entire history of the 21st century tells us that rate cuts do not stimulate economic growth. After the financial crisis, rate cuts did not work at all. Do not count on the Fed to save the economy."