Bloomberg Talks JPMorgan's Bob Michele Talks US Economy Amid Iran War
Mar 27, 2026
Bob Michele, Global Head of Fixed Income at J.P. Morgan Asset Management, offers a concise market-minded take. He discusses how higher real yields and energy costs are already shaping the US economy. He outlines Fed response choices amid labor and oil-driven inflation. He examines bond volatility versus equities and how oil shocks could force global central banks into action.
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Higher Real Yields Are Hitting The Economy
- Rising oil-driven real yields are already affecting US businesses through higher energy input costs and consumer prices.
- Bob Michele points to recent labor softness and immediate higher gasoline costs as signs the economy is feeling the impact now.
Fed Has Limited Options Amid Oil Shock
- The Fed faces a dilemma with limited policy options: growth can slow without an obvious policy fix if oil keeps rising.
- Michele says policymakers must wait to see whether labor market weakness or energy-driven inflation breaks first.
Orderly Bond Selloff Despite Equity Volatility
- Bond-market volatility has been muted despite equity VIX spikes, meaning the sell-off has been orderly.
- Michele attributes this to market confidence the administration will seek an off ramp from Middle East tensions ahead of midterms.