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

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:

• 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.