The Fed won’t draw back from its path of interest rate hikes until the end of next year as inflation continue and the economy isn’t slowing as expected, according to JPMorgan strategist Julia Wang.
That’s contrary to the expectations of many analysts, who have warned this year that the Fed may be forced to pivot in order to avoid a recession. Despite inflation blasting in above expectations in September, Wharton professor Jeremy Siegel noted that inflation was likely being overstated in the official statistics, and some sectors of the economy, like housing, have been deteriorating in response to rising interest rates.
But a pivoting is unlikely in the near term, given the, Wang said in an interview with Bloomberg on Thursday.
“The weakness in the economy isn’t really as big or coming as fast as people have expected. I think a lot of indicators on the consumer side actually are still pretty resilient,” she said, pointing to the recent upside in GDP numbers, which clocked in above expectations on Thursday.
