Co-chief investment officer of JPMorgan Chase Asset Management and head of JPAM's fixed income business, Bob Michel, said Friday that the US Federal Reserve has been able to engineer "a soft landing" in a recent interview with the Financial Times.
According to Michel, "The pivot at the last meeting was a way for them to say that inflation is pretty much at their target, and if the labor market continues to cool, why not bring down real yields?" Moreover, despite soft landings being "notoriously difficult," the US central bank has "a lot of capacity to bring rates down."
Later in the interview, he added that "the next phase" the economy will go through is "a period of sustained growth." "Just like we saw during the Clinton administration, there will be plenty of growth to generate tax revenue and stabilize the federal deficit and government spending," Michel anticipated.
