Fed Safest to Do Nothing Here, Says JPMorgan’s David Kelly

David Kelly of JPMorgan Asset Management said May may prove to be the high-water mark for inflation in this cycle, framing the latest CPI report as potentially supportive of a less aggressive Fed stance at the June meeting. The comment centers on inflation moderation and its implications for monetary policy and interest-rate expectations. Market impact is moderate to high because it speaks directly to the Fed outlook.

Analysis

David Kelly of JPMorgan Asset Management said May may prove to be the high-water mark for inflation in this cycle, framing the latest CPI report as potentially supportive of a less aggressive Fed stance at the June meeting. The comment centers on inflation moderation and its implications for monetary policy and interest-rate expectations. Market impact is moderate to high because it speaks directly to the Fed outlook.