A JP Morgan strategist says a Federal Reserve rate cut is not needed

September 18, 2024 at 04:15AM
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.

The Federal Open Market Committee (FOMC) meets today, Wednesday, September 18, 2024. Announcement due:

at 1800 GMT, 1400 US Eastern time

Earlier:

FOMC forecasts from 28 bank analysts. Forecasts for today’s cut, dot plots, 2024 and 2025

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.

A JP Morgan strategist says a Federal Reserve rate cut is not needed