On Tuesday, US stocks rose, but investors remained concerned about the global historic sell-off on Monday, which was triggered by weak US economic data and an unexpected rate hike in Japan.

David Kelly, chief global strategist at JPMorgan Asset Management, said in the United States that the "bloody" market slump should be a signal to the Federal Reserve that it needs to take more measures to help investors regain confidence in the economy and get through this extremely volatile period.

Kelly said in an interview that the Federal Reserve should send a strong signal to the market that the situation is still under control. Kelly said: "I think they should say, 'We expect the economy to slow down, that's what we're seeing now. We are indeed prepared to lower interest rates at the appropriate time, but we believe there is no emergency at present.'"

"I think they should say, ‘We expect the economy to slow down, that's what we're seeing now. We are indeed prepared to lower interest rates at the appropriate time, but we believe there is no emergency at present.'"

On Wednesday, Bank of Japan Deputy Governor Masayoshi Amamiya made his first remarks after 'Black Monday,' saying that if the market is unstable, the Bank of Japan will not raise interest rates. This statement helped calm worried investors and led to a rebound in Asian stocks, with the Nikkei 225 index rising as much as 3%.

Some commentators have called for an emergency rate cut by the Federal Reserve after the massive sell-off. However, Kelly said he believed that this would not be constructive. More importantly, a sudden rate cut might exacerbate investor concerns about the economy.

On Monday, the U.S. stock market plunged, with the Dow Jones Industrial Average down over 1,000 points and the Nasdaq Composite Index down over 3%. In global markets, the Japanese Nikkei 225 index fell 12.4%, its biggest single-day drop since Black Monday's crash in 1987, and European markets also fell.

Sell-offs prompted some investors to prepare for a recession, investing in defensive stocks, dividend-paying stocks, and government bonds while selling high-growth stocks related to hot trades such as artificial intelligence.

Kelly said one big problem was that the Federal Reserve should not have kept interest rates so high for so long. "I think the Fed should always try to get back to a neutral level and stay there. They should not try to over-tighten policy or loosen policy to stimulate the economy."

In short, the Federal Reserve's long delay in cutting interest rates led to a weak job market, which in turn contributed to the market's sharp decline over the past few days.

But even if interest rates were cut at the last policy meeting, it would not be a quick fix and would not prevent volatility from accelerating. And like rate hikes, interest rate cuts have a lagging effect on the economy.

"I don't think people understand this. I don't think the Fed has told people this, or maybe they don't realize it themselves," Kelly said, adding,"Before it becomes a stimulus, it's a drag."

Kelly believes that the U.S. economy is likely to continue to slow down, and that a recession and larger stock market adjustments could occur.

"A 10% adjustment or a 20% bear market decline is entirely possible," he said. "The problem for investors is that you don't know when it's going to start to plummet."

Editor/Lambor