JPMorgan executive warns Fed may need emergency rate cut

Bob Michele, Global Head of Fixed Income at JPMorgan Asset Management, said the Federal Reserve may need to implement an emergency rate cut before its May 7 meeting due to mounting market stress. Speaking to Bloomberg, Michele compared the current volatility, following President Trump’s new tariff policies and over $5 trillion in market losses, to past crises like 1987, 2008 and 2020. He criticized the Fed’s wait-and-see approach, arguing that rising inflation, slowing growth and pressure on debt-laden companies may warrant immediate action. Fed Chair Jerome Powell has maintained a cautious stance, reiterating a commitment to the 2% inflation target. Markets currently price a higher probability of rate cuts beginning in June, Crypto Briefing reported.