Summary
- JP Morgan's Bob Michele suggested that the Fed might implement an emergency rate cut before the May meeting due to market stress.
- He mentioned that the recent market turmoil is as severe as historical crises, and there are past instances where the Fed quickly cut rates.
- Michele added that if the Fed does not take action, the situation could worsen, and they cannot just sit and wait.
JP Morgan's Global Head of Fixed Income, Bob Michele, stated in an interview with Bloomberg on the 7th (local time) that "due to severe market stress, the US Federal Reserve (Fed) might implement an emergency rate cut before the May meeting."
He said, "Last week's market turmoil was as severe as historical crises like the 1987 stock market crash, the 2008 financial crisis, and the 2020 COVID-19 market downturn," adding that "in past such crises, the Fed quickly decided to cut rates."
He continued, "The Fed might intervene similarly this time," analyzing that "the Fed has previously stated it would act preemptively before problems arise. I doubt they can wait until the May meeting."
Furthermore, he added, "We are experiencing a severe situation now, and if the Fed does not take action, it is likely to worsen, leading to a massive collapse," stating that "the Fed cannot just sit and wait."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
