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

According to Golden Finance, investors have been holding their breath for the Federal Reserve to cut interest rates, but JPMorgan strategist Oksana Aronov believes that under the current environment, the Fed has no convincing reason to do so. In an interview with CNBC, Aronov said that the economy is performing well and unemployment is below what the Fed considers a neutral level. Even in their long-term forecasts, inflation is above target and it doesn't seem like these interest rates are limiting economic growth. It's hard to understand why they would take action now when there aren't any issues. In fact, growth predictions for 2024 are only increasing. The latest economic forecast summary from the Federal Reserve shows officials expect real GDP growth this year will reach 2.1%, compared with a prediction of 1.4% in December last year. Other economists such as Apollo's Torsten Sløk also predict zero rate cuts this year.