David Kelly, chief market strategist at JPMorgan Asset Management, sees signs of a gradual slowdown in the US economy, and he expects this to put pressure on cyclical industries such as manufacturing or retail. He said that lowering the benchmark interest rate is unlikely to reverse this situation. "I believe that if stock market investors think that a rate cut will benefit the overall direction and profitability of the economy, they are simply misunderstanding the situation. When the Fed cuts interest rates, it reduces interest income, it makes people believe that there will be more rate cuts, so they should wait to borrow, it makes people believe that the Fed is afraid of an economic recession - so they start to fear an economic recession."