JPMorgan strategist: U.S. economy is strong, Fed doesn't need to cut rates

Oksana Aronov, head of alternative fixed income market strategy at asset management firm, told CNBC on Tuesday that interest rates are not as restrictive as the Fed expected... The market has become accustomed to a low interest rate environment, "This (the market's call for rate cuts) is the impact that 15 years of extraordinary unconventional monetary policy will have on the market." Aronov said that the US unemployment rate has hit a record low, and the market is no longer accustomed to a normal interest rate environment. The current unemployment rate of 4.3% is "well within" the Fed's 5% target, and any recent weakness is just a return to normal after years of very tight labor markets... We haven't really seen widespread weakness. Retail sales and strong earnings from retailers such as Wal-Mart Stores (WMT.N) all show strong consumption levels. Aronov said that the economy is still continuing to grow steadily and there is no need to "exaggerate." (Jinshi)