JPM’s Michele Sees Fed ‘Maintenance Hikes’ Next Year

JPMorgan Asset Management’s Bob Michele expects the Federal Reserve to lift rates “once or twice” next year rather than run a “dramatic hiking cycle.” The view implies continued restrictive policy bias and supports higher-for-longer expectations for rates, which is mildly negative for duration and credit sensitivity. Overall impact is more sentiment/positioning than an immediate catalyst.

Analysis

JPMorgan Asset Management’s Bob Michele expects the Federal Reserve to lift rates “once or twice” next year rather than run a “dramatic hiking cycle.” The view implies continued restrictive policy bias and supports higher-for-longer expectations for rates, which is mildly negative for duration and credit sensitivity. Overall impact is more sentiment/positioning than an immediate catalyst.