JPMorgan Asset Management Says Fed Unlikely to Change Rates This Year

JPMorgan Asset Management said the Federal Reserve is unlikely to adjust its benchmark interest rate this year.

BlockBeats reported on June 18 that Tai Hui, chief market strategist for Asia at JPMorgan Asset Management, said the Fed showed no sign at this meeting that it was prepared to rush into monetary easing.

The Fed left its benchmark rate unchanged at 3.50% to 3.75% at its Federal Open Market Committee meeting on June 17. In its policy statement, the central bank said inflation remains above its 2% target, partly reflecting supply shocks that have driven price increases in some sectors, including energy. The committee also said it is committed to restoring price stability.

Hui said the latest policy statement marked a clear change in format. Compared with the traditional four-paragraph statement released in April, it was substantially streamlined and no longer carried the earlier dovish tilt.

He added that the Fed appears willing to remain patient at the current rate level. JPMorgan Asset Management is maintaining its view that the Fed will not adjust rates this year, he said.