JPMorgan strategist says Fed should keep interest rates unchanged

The Federal Reserve should leave interest rates unchanged as inflation gradually moderates, according to JPMorgan Asset Management chief global strategist David Kelly.

Kelly said he expects policymakers to remain on hold, citing growing evidence that a sustained wage-price spiral will not take root in the US economy.

His comments followed July consumer-price data showing subdued underlying inflation. US Treasuries held their gains after the report as investors assessed the outlook for monetary policy.

The strategist’s view supports a patient approach from the Fed, allowing officials to monitor inflation and labor-market conditions before making another change to borrowing costs.

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