JPMorgan: Fed should not cut rates again in December

Bill Eigen, a bond expert at JPMorgan Asset Management, warned the market before the Fed's next meeting that the Fed may not have as much room to cut interest rates as it thinks, and central banks would be better off not cutting rates again in December. He added that this is because there are some signs that the US economy is starting to heat up again, including strong GDP growth, slightly higher-than-expected inflation data last month, and record stock prices. Wage, service and housing inflation look particularly tricky and may even rise. Housing prices remained one of the biggest drivers of inflation in October, rising 4.9% year-on-year. The Fed has cut interest rates by 75 basis points so far this year, and it may also be closer to the neutral rate than it thinks. (Jinshi)