– JPMorgan market strategist says there is no compelling reason for the Fed to cut rates right now
– Economy seems to be doing well overall, with growth projections for 2024 increasing
– In the absence of any major issues, it is hard to see why the Fed would make any changes at the moment
JPMorgan market strategist Oksana Aronov believes there is currently no compelling reason for the Federal Reserve to cut interest rates. The economy is doing well, with growth projections for 2024 increasing. With unemployment below neutral levels and inflation above target, there does not seem to be a need for rate cuts. Aronov questions why Fed Chair Jerome Powell would make any moves at this time when everything appears to be functioning smoothly.
In the absence of any major economic issues, Aronov sees no reason for the Federal Reserve to lower interest rates. Growth projections for 2024 have risen, indicating a positive outlook. Other economists, such as Torsten Sløk from Apollo, also predict that there will be no rate cuts this year, which could present challenges for fixed-income investors. While stocks may seem overvalued in anticipation of rate cuts, the strong corporate earnings have fueled the stock market, overshadowing the rate cut narrative. Overall, Aronov’s view is that given the current economic conditions, there is no urgency for the Fed to take any action.