Interest Rates Not As Restrictive As Expected, Says Market Strategist

According to Odaily, Oksana Aronov, Head of Alternative Fixed Income Market Strategy at an asset management company, stated in an interview with CNBC on Tuesday that interest rates are not as restrictive as the Federal Reserve anticipated. Aronov noted that the market has become accustomed to a low-interest-rate environment, attributing the current calls for rate cuts to the impact of 15 years of unconventional monetary policy. She highlighted that the U.S. unemployment rate has reached historic lows, and the market is no longer familiar with a normal interest rate environment. The current unemployment rate of 4.3% is well within the Federal Reserve's target of 5%, and any recent signs of weakness are merely a return to normalcy after years of a highly tight labor market. Aronov emphasized that there has not been a widespread weakening of the economy. Strong retail sales and robust earnings from retailers like Walmart indicate a high level of consumer spending. She concluded that the economy continues to grow steadily, and there is no need for alarm.