A top strategist at JPMorgan Asset Management said on CNBC's Power Lunch that the Federal Reserve will be 'fundamentally making a mistake' by cutting rates later this month.
"I think they're worried about independence. I think they're worried about getting too criticized by the administration," Kelly said.
Kelly also said members of the Fed "seem obsessed" with inflation, which has remained below the target rate of 2%. "That's a slippery slope. We may not get to 2% inflation. Does that justify October? Does that justify December? You could go all the way down to zero on the Federal Funds Rate and not get to 2% inflation," Kelly said.
The overwhelming expectation in the market is for the Fed to cut interest rates at its meeting on July 30 and 31.The S&P 500 reached on Wednesday when it became clear that Powell would not try to dissuade the market of that expectation in his Congressional testimony.
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