Oksana Aronov, JPMorgan Asset Management head of market strategy for alternative fixed income, spoke with CNBC on Tuesday.
Says a rate cut is not needed, citing:
- historically low unemployment
- a normal rate environment that
markets are no longer used to
- current
4.3% unemployment rate is “certainly well within” the Fed’s
5% target, and that any recent weakening is merely a return to normal
after years of very tight labor market conditions … we’re not really
seeing a broad-based weakening - retail sales and strong earnings from retailers like Walmart and
Target, which she said show signs of a strong consumer - “The economy is
continuing to chug along. There’s really no impetus to be alarmist
here” - rates aren’t as restrictive as the Fed may have expected … the market has gotten used to being in a very low-rate
environment …”That’s what 15
years of extraordinarily unorthodox monetary policy will do to a
market”
Adam generated this pic. Speaks a thousand words it does.
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The Federal Open Market Committee (FOMC) meets today, Wednesday, September 18, 2024. Announcement due:
- at 1800 GMT, 1400 US Eastern time
Earlier:
- Most analysts expect a 25bp interest rate cut from the Federal Reserve today
- A 50bp Federal Reserve rate cut coming today? History says ‘No’.
This article was written by Eamonn Sheridan at www.forexlive.com. Source