In a striking observation amid the ongoing market turmoil, Bob Michele, Managing Director, Chief Investment Officer, and Head of Global Fixed Income at JPMorgan Asset Management, has compared the recent back-to-back market drops to three of the most severe crises in modern history: the 1987 stock market crash, the 2008 global financial crisis, and the 2020 COVID market shock.
Citing analysis from economist Larry Summers, Michele noted that Thursday and Friday’s consecutive market declines were historically significant, surpassed only during those three past crises. “This is a historic period,” he said in comments reported by Bloomberg.
Michele emphasized that in all three previous episodes, the Federal Reserve stepped in swiftly and aggressively with substantial rate cuts to stabilize markets. With markets continuing to fall—another 5% down at the time of his comments—he believes the Fed is under immense pressure.
“I think for now, if you go back to Friday, the Fed can talk tough, they have to be looking at this,” he said. “I don’t know if they can even make it to the May meeting before they start bringing rates down.”
His comments reflect a growing chorus of voices warning that persistent monetary tightening amid global volatility could trigger a broader financial shock—potentially forcing the Fed to pivot earlier than anticipated.
Disclaimer: The above views are of the individual mentioned and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
