jpmorgan asset management is of the view that a recession in the us is a virtual certainty and the federal reserve is likely to cut interest rates by the third quarter as growth fizzles out according to a report what happened the market is right to be penciling in cuts said seamus mac gorain head of global rates in london according to a bloomberg report he further stated that inflation is too high and it will take a recession to bring it back down while adding that us banking woes have only made a recession more likely it is noteworthy that fed officials have countered the widely prevalent view in the market that interest rate reductions could materialize later in the year mac gorain supports the view of swaps traders who project that the central bank will pivot as soon as september to arrest slowing growth jpmorgan favors treasuries as a strong hedge against a slowdown and sees potential for 10year yields to fall below 25 in case of a deep downturn the report said debt ceiling in regard to the debt ceiling crisis mac gorain said the market will witness volatility just like in 2011 and that will be enough to push the political process ahead its hard to say exactly when that will happen whether it will be in the next few weeks or whether it might be a little bit later in the summer we have shifted away from very shortdated us treasury bills we can get a higher yield for example by owning japanese bills instead of treasury bills he said according to the report read next tesla apple amazon stakes upped by utah retirement systems during q1