According to JPMorgan, investors should continue to buy a lot of commodities, focusing on energy to hedge against inflation because the interest rate cut may take place later than initially forecast. “We are not out of the woods yet and the current trend growth backdrop increases the risk that inflation will re-emerge as a problem for the economy,” said Marko Kolanovic, chief market strategist at JPMorgan. with both central banks and markets.” third customer. According to Kolanovic, inflation has unexpectedly increased in the US and Western Europe in recent months, especially in the service sector. Economic growth is also stronger than expected with JPMorgan revising global growth to 0.5% in the first half of the year. The investment bank now expects the Federal Reserve to begin cutting interest rates in July, although still sees a 75 basis point cut through the end of the year. “However, continued growth recovery and difficult inflation increase the likelihood of fewer cuts,” Kolanovic warned clients. “A key unknown is to what extent this will reverse the easy financing conditions that have helped support growth.” Kolanovic advised investors to continue investing in commodities, focusing on energy as oil prices rise. The crude oil price surge is impacting the global economy at the same time as the conflict in the Red Sea disrupts shipping and demand, putting pressure on prices, he said. JPMorgan predicts Brent prices could rise to $100/barrel in September as OPEC+ member Russia cuts production and Ukraine escalates drone attacks on the country's energy infrastructure This. Brent was trading above $90 a barrel on Tuesday. Ukraine has so far attacked 18 Russian oil refineries with a total annual capacity of 3.9 million barrels per day. According to JPMorgan, it is estimated that Russia's currently closed oil refining capacity is 670,000 barrels per day. The attacks could force Russia to cut production further and ban petroleum exports. However, according to JPMorgan, the US can exploit its strategic petroleum reserves as a countermeasure if the situation escalates and worsens further.