Kelly from Morgan Asset Management warned that the Federal Reserve's interest rate cut may harm the stock and bond markets.

David Kelly, Chief Global Strategist at Morgan Asset Management, said that the market generally expects the Federal Reserve to cut interest rates this week. If this move is seen as being driven by political pressure and does not align with the central bank's economic forecast, it will increase the risks faced by stocks, bonds, and the U.S. dollar. Kelly wrote in a report on Monday that Wall Street bond and equity investors have been cheering recently in anticipation of the Fed resuming rate cuts after a nine-month pause. However, after the recent market surge, investors should adopt a cautious stance and seek diversified allocation.