JPMorgan's Bob Michele Predicts Recession and Calls for Regional Bank Reorganization

JPMorgan Asset Management CIO Bob Michele predicts a brief market rally in the next quarter before an inevitable economic slowdown and recession hits the US by year-end. Michele warns investors not to lean into the rally as gains will be fleeting and the recession will "pound away at the economy." The Federal Reserve's continued interest rate hikes and quantitative tightening over the past year have been an effort to bring down inflation, but Michele notes that the failure of several banks in March caught markets off guard, emphasizing the unpredictability of the economy.