The Fed is pushing the economy ‘quite unnecessarily’ into a recession, J.P. Morgan strategist says

Shot of JPMorgan chief global strategist David Kelly listening during an interview (Credit: Victor J. Blue—Bloomberg/Getty Images)

The Federal Reserve could still avoid creating a severe economic downturn in the U.S. with its interest rate hikes, a chief J.P. Morgan Asset Management strategist said on Tuesday. But it probably won’t because its leaders are convinced, without having said so publicly, that a recession is the only cure to rampant inflation.

“If the window is narrowing, it’s because the Federal Reserve is shutting the window,” David Kelly, chief global strategist for J.P. Morgan Asset Management, told Insider in an interview released Tuesday. “The economy is very much at risk of the Fed pushing it into recession quite unnecessarily.”