JPMorgan Rows Back on Fear That All Markets Are ‘Japanizing’
- U.S. seen as some way off long-term scenario of low inflation
- Rates at 0% only a ‘necessary condition’ for the phenomenon
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While the threat of Japanification hangs over some of the world’s biggest markets, there’s little chance of it happening in the U.S., according to analysis by JPMorgan Chase & Co.
Unlike the U.K. and euro area, America is still far away from the chronic forces that have characterized Japanese markets during the past several decades, the New York-based bank said in a note dated Sept. 18. The catalysts are the ultra-loose monetary policies, yet they’re affecting some markets less than others.