Fed Rate Hike Delay Hurting Confidence Says J.P. Morgan Strategist

There is no reason for the Federal Reserve to continue with emergency measures with inflation and unemployment at current low levels. If Fed Chair Janet Yellen wants to instill confidence in the American public, the best thing to do is raise rates already, said Samantha Azzarello, global market strategist at J.P. Morgan Asset Management. 'I think what we need now is the Fed to raise rates to give that vote of confidence to the market that the U.S. economy is on sound footing and ready to keep going,' said Azzarello, adding that she expects liftoff before the end of the year but with very dovish language around it. In its statement last week, the Fed said that 'global economic and financial developments' filtered into its decision to leave rates alone. Azzarello said she grudgingly agrees with the Fed’s thought process when it comes to incorporating Chinese economic worries into its discussions, even though she disagrees with the ultimate decision. 'To the extent that the Chinese economy affects our labor market or our inflation, the Fed has to be tuned into what’s happening abroad, especially what’s happening in China,' said Azzarello. Azzarello said the U.S. economy will pick up momentum heading into the year end and carry it into 2016.