JP Morgan warns that if the Fed cuts rates it'll be for the wrong reasons, stocks to fall

<p>Hugh Gimber, global market strategist at JPMorgan Asset Management spoke on CNBC (gated):</p><ul><li>believes Fed cuts in 2024 would likely coincide with declining corporate earnings, creating headwinds for stocks</li><li>“I think the key point for me is that the reason the Fed cuts next year is not because inflation has just smoothly glided back to target. Rather, it’s because we start to see cracks in the growth outlook” </li><li>“And that is clearly not a very positive scenario for equities, particularly when you think about what is baked into earnings numbers”</li><li>“You have this disconnect at the moment: 12% earnings growth expected for next year and still the Fed expected to cut multiple times. Those things can’t both happen at the same time”</li></ul><p>Federal Reserve Chair Powell speaks at midday US Eastern time on 19 October 2023 … preview coming up</p>

This article was written by Eamonn Sheridan at www.forexlive.com.