David Kelly, chief global strategist at JPMorgan Funds told CNBC’s “Power Lunch” that-
“The Federal Reserve is doing long-term harm to the economy by not hiking interest rates. The economy has hit every target they have set. And we’ve got an inappropriate level of interest rates which is distorting asset markets, blowing bubbles and will eventually end up in inflation. They’re imposing long-term harm for no short-term good here.”
Kelly believes that the non-movement from the Fed is due to the upcomng U.S. Presidential election.
“If they (The FOMC) had come out and hiked today and if we’ve had some sort of tantrum in the markets which amounted to a big sell-off in the stock market that could have had a political effect in this election.”
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