Strategist at Quantum Strategy, David Roshe said the latest US employment data suggests the Federal Reserve (Fed) has no significant reason to cut rates by 50 basis points due to the labor sector still under control.
He added that the Fed's decision last month to lower its main overnight lending rate by half a percentage point was a swift move.
The latest Non-Farm Payrolls (NFP) data shows that employers added 254,000 jobs in September, far exceeding economists' expectations of 150,000. The unemployment rate fell to 4.1%, down 0.1 percentage points.
Roche said the numbers made the Fed's aggressive rate cuts look foolish, populist and panicked.
The error is based on reporting on immediate data and without a strategic view.
He also said that the Fed does not need to implement major cuts unless something bad happens, such as the Middle East conflict that is escalating if Israel is determined to bomb Iran's nuclear test site.
Fed rates won't go below 4% or 3.5% because the economy is so robust that firms are making enough money without needing lower interest rates.
Previously, the Fed defended its massive rate cuts after signs of easing inflation and a weakening labor market.
However, market expectations for a big interest rate cut in November have fallen off the cliff following last week's data.
