JPMorgan Strategist: The Federal Reserve has no reason to cut interest rates now

Investors have been holding their breath waiting for the Federal Reserve to cut interest rates, but Morgan Stanley strategist Oksana Aronov believes that there is no convincing reason for the Fed to cut rates in the current environment. Aronov said in an interview with CNBC that the economy is performing well, with unemployment rates below what the Federal Reserve considers neutral levels, and even in their long-term forecasts, inflation rates are above targets, and the economy does not seem to be constrained by these interest rates. It is difficult to understand why they need to take action now without any problems. In fact, the growth forecast for 2024 only increases without decreasing. The latest economic forecast summary from the Federal Reserve shows that officials expect real GDP growth to reach 2.1% this year, compared to a forecast of 1.4% in December. Other economists such as Torsten Sl ø k from Apollo also predict a zero rate cut this year.