JPMorgan strategist: U.S. economy is strong, Fed doesn't need to cut rates
On September 18, Oksana Aronov, Head of Alternative Fixed Income Market Strategy at JPMorgan Asset Management, said in an interview with CNBC that interest rates are not as restrictive as the Federal Reserve expects... The market has become accustomed to a low-interest rate environment, "This (the market's call for rate cuts) is the impact of the extraordinary unconventional monetary policy of the past 15 years on the market." Aronov said the US unemployment rate is at a historic low, and the market is no longer accustomed to a normal interest rate environment. The current 4.3% unemployment rate is "completely within" the Federal Reserve's 5% target, and any recent weakness is just a return to normal in the context of a very tight labor market for many years... We have not really seen widespread weakness. Retail sales and strong earnings from retailers like Walmart (WMT.N) indicate a robust level of consumption. Aronov said the economy is still growing steadily, and there is no need to "sound the alarm".
