JP Morgan: 2020 might not be the year to think about recession - Bloomberg

The Federal Reserve’s change in tone may mean investors shouldn't be driven by fears of recession for now and should reconsider the timing of the investment cycle, JP Morgan analysts said, according to Bloomberg.

The Fed kept rates unchanged last week and counseled patience on rate hikes. It also signaled flexibility in reducing bond holdings.  

Key points (Source: Bloomberg)

“If the Fed is less spooked by full employment, more tolerant of an inflation overshoot and less anxious to reach restrictive policy, then 2020 might not be a year to think about recession and so late 2019/early 2020 would be premature to position defensively cross-asset,” strategists led by John Normand wrote in a note dated Feb. 1.