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JPMorgan strategist: No reason for Fed to cut interest rates now

JPMorgan strategist: No reason for Fed to cut interest rates now

CointimeCointime2024/03/27 02:56
By:Cointime

Investors have been eagerly awaiting a rate cut by the Federal Reserve, but Morgan Stanley strategist Oksana Aronov believes that in the current environment, the Fed has no convincing reason to lower rates. Aronov stated in an interview with CNBC that the economy is performing well, with unemployment rates lower than the neutral level believed by the Fed, and even in their long-term forecasts, inflation rates are higher than the target, but the economy does not seem to be restricted by these rates. It is difficult to understand why they are taking action now without any problems. In fact, growth forecasts for 2024 are only increasing. The Fed's latest economic forecast summary shows that officials expect actual GDP growth to reach 2.1% this year, compared to a forecast of 1.4% in December. Other economists such as Apollo's Torsten Sløk also predict zero rate cuts this year.

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