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J.P. Morgan Asset Management's Chief Global Strategist stated that the Federal Reserve should keep interest rates unchanged, and as more evidence emerges that a sustained wage-price spiral will not form, inflation is expected to gradually decline. David Kelly said after the release of the July Consumer Price Index, The Fed absolutely should stay put; I actually believe they will do just that. The report indicated that core inflation in the U.S. remained moderate in July, and following the announcement, U.S. Treasury yields continued to rise. Kelly pointed out that three forces are collectively driving a significant cooling of inflation: tariff costs will decrease year-over-year; with the market optimistically believing that the war in Iran will end, oil prices will fall; and wage growth continues to lag behind inflation. He added that the last point weakens the momentum needed for price pressures to form a self-reinforcing cycle, which also means that the Fed does not need to raise interest rates to curb inflation. Kelly noted that the current level of leverage in the financial markets is relatively high, and even a small rate hike could trigger a re-pricing of assets.