JPMorgan Explores Fed’s Action In Case Of Recession

The Federal Reserve could be forced to cut interest rates in 2023 if a deep recession occurs, according to JPMorgan. This would be a turnaround move by the Fed, considering it has aggressively raised rates in 2022.

Potential rate cuts from the Fed would help backstop the stock market in the event of a quick decline, according to JPMorgan’s Marko Kolanovic.

Just as fast as the Fed raised interest rates in 2022, they could do the exact opposite in 2023 and cut rates, according to JPMorgan and that will be on the table if a deep economic recession materializes and corporate earnings fall.