The Fed could slash rates below 3% to maintain 'notoriously difficult' soft landing, JPMorgan expert says

• JPMorgan Asset Management's Bob Michele said the Fed could slash rates by 250 basis points in 2024.
• Cuts of that magnitude could send the benchmark rate below 3%.
• That's as a falling inflation rate makes the current federal funds rate more restrictive.

There's a good chance that the Federal Reserve will slash interest rates by as much as 250 basis points through 2024, JPMorgan Asset Management's Bob Michele told Financial Times last Thursday.

If the inflation rate is falling while the fed funds rate holds steady, that progressively tightens the real rate, meaning restrictive policy gradually becomes more of an economic burden.