According to Odaily Planet Daily, Oksana Aronov, head of alternative fixed income market strategy at asset management company, said that interest rates are not as restrictive as the Federal Reserve expected. The market has become accustomed to a low interest rate environment, and this is the impact of 15 years of unconventional monetary policy on the market.
Aronov said that with the US unemployment rate at a record low, the market is no longer accustomed to a normal interest rate environment. The current unemployment rate of 4.3% is well within the Fed's 5% target, and any recent weakness is just the labor market returning to normal.
Retail sales and earnings at retailers such as Wal-Mart are strong, indicating strong consumer spending. Aronov said the economy is continuing to grow steadily and there is no need to be alarmist.
