JP Morgan Analyst Agrees With Trump That Yellen and the Fed Are Doing This To Markets

david-kelly-jp-morgan

In a recent interview with CNBC, JP Morgan’s chief global strategist slammed the Federal Reserve for keeping interest rates near zero.

Here’s the report from Zero Hedge:

“JPM’s chief global strategist, David Kelly slammed the Fed, telling CNBC that the Fed, by not hiking rates again, is ‘doing long-term harm to the economy by not hiking interest rates.’ The perplexed strategist added that ‘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.

“Well, maybe not quite: for a quick glimpse of the ‘short-term good’ just look at any stock ticker today: everything is green, as the VIXplosion continues to drag volatility to an 11-handle, unleashing a risk-parity/CTA buying spree as noted earlier.

“But the punchline in Kelly’s angry rant emerged when the JPM analyst explained why he thinks the Fed did not hike: as CNBC summarized, ‘he believes there is an ‘unspoken’ reason for the Fed’s decision – the presidential election in November.’

‘If they 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.’ To which Diane Swonk added ‘and they already are a political pinata’ leading to David Kelly confirming ‘Well they are.’

Once again, Donald Trump has been proven right: Janet Yellen and the Fed are grossly distorting asset markets and blowing multiple bubbles to keep the US economy going. If the Fed would raise interest rates before the election, the stock market would take another significant leg down (just like it did earlier this year after the announced rate hike last December) and hurt Hillary Clinton’s chances of winning.

Do you agree with David Kelly that the Federal Reserve is being political, instead of an independent entity entrusted to do what’s right for the American people?

Share your thoughts in the comments section below.