Dec
10
Key to Trigger Market ‘Inflection’ Is a 1% Real Fed Rate, JPMorgan Says
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By the second half of 2018, Fed may have more of an effect
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Real cash rate seen having more influence than yield curve
This year’s boom in financial markets has taken things to “late cycle,” but the cycle has a little ways to go yet, according to JPMorgan Chase & Co.
The key trigger for an “inflection point in risky markets and volatility” will be when cash rates adjusted for inflation are at 1 percent, JPMorgan strategists led by John Normand and Dubravko Lakos-Bujas wrote in a Dec. 8 note. Currently, the rate is about negative 0.5 percent, measuring the upper band of the Federal Reserve’s policy target minus the consumer-price index excluding food and energy…
Key to Trigger Market ‘Inflection’ Is a 1% Real Fed Rate, JPMorgan Says
