The U.S. economy is not in need of a substantial rate cut to maintain its growth, according to Carl Weinberg, Chief Economist at High Frequency Economics.

What Happened: Weinberg discussed the state of the U.S. economy and the Federal Reserve’s monetary policy decisions, in a recent interview with CNBC.

Weinberg stated that the U.S. economy doesn’t require a significant rate cut to continue growing.

“This economy doesn’t need a strong rate cut to keep on growing. It needs care and maintenance. It doesn’t need drastic treatment,” he said.

He highlighted that the U.S. economy is not contracting and job creation is steady, with approximately 117,000 jobs added per month over the last quarter. The consumer sector also remains robust.

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While Weinberg acknowledged a case for easing monetary conditions, he doesn’t see a strong case for an emergency cut of 50 basis points. Instead, he suggested a more modest cut of 25 basis points is more likely.

Why It Matters: These comments come at a time when the Federal Reserve is considering monetary policy decisions amidst a slowing, yet still growing, economy. The Federal Reserve was set to cut the federal funds rate for the first time in over four years, with the size of the cut being a subject of debate.

Investors and speculators were leaning towards a larger 50-basis-point cut, with a 65% probability of such a cut being priced into Fed futures. This was a significant increase from just 30% a week prior.

Simultaneously, as the Federal Reserve prepared to cut interest rates, advisors and wealth managers were reassessing their fixed-income strategies. They were adjusting their bond and income portfolios to capitalize on current yields and protect against future market shifts.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari