J.P. Morgan asset management global market strategist Jack Manley spoke in an interview with Fox. In brief:
- believes the Fed’s current policy stance is too restrictive given the mixed signals in the economy
- sees justification for starting a rate-cut cycle
- doubts the Fed will cut aggressively because labor markets remain tight, wages are growing, and consumers overall are resilient
- Manley says that low- and middle-income households are under strain, stresses that higher earners drive most of the economy’s momentum
On markets,
- highlights the durability of the Magnificent 7 earnings story but expects a longer-term rotation toward broader S&P 500 participation, with earnings growth between big tech and the rest converging by 2026
The full interview is here:
