Fed Can Stay on Hold This Year, JPMorgan's Michele Says

Bob Michele of JPMorgan Asset Management said the Iran conflict poses an inflation risk that could keep the Federal Reserve on hold through year-end. The message is mildly negative for rate-cut expectations and supportive of a higher-for-longer interest-rate outlook. The key implication is a more cautious macro backdrop driven by geopolitical inflation risk rather than new Fed policy action.

Analysis

Bob Michele of JPMorgan Asset Management said the Iran conflict poses an inflation risk that could keep the Federal Reserve on hold through year-end. The message is mildly negative for rate-cut expectations and supportive of a higher-for-longer interest-rate outlook. The key implication is a more cautious macro backdrop driven by geopolitical inflation risk rather than new Fed policy action.