David Kelly, global chief strategist at JPMorgan Asset Management, said the Fed should cut interest rates by 25 basis points on Wednesday rather than the 50 basis points some market participants had called for to avoid investors panicking about the state of the US economy. He said the Fed had been wrong to keep rates high for so long. "But when they cut rates, they need to be gentle because they don't want people to think they are panicking," Kelly added.