Fed's Looking For The Facts
Sandy Lincoln, chief market strategist for Wayne Hummer Asset Management, told CNBC’s “Squawk Box” that he believes the Fed won’t cut or raise interest rates until it has conclusive data plotting the course of the economy.
“The people who rushed to judgment that (Wednesday’s Federal Reserve statement) may open the door to a Fed cut may be premature,” he said Thursday. “I’m not sure the data in terms of the economy’s performance supports that claim.”
Doug Sandler, chief equity strategist for Wachovia Securities, said Wednesday’s Fed statement doesn’t change his investment strategy.
In this environment, he likes large-cap companies that offer international revenue and growth.
“The news coming from the Fed (Wednesday) actually moved the market through some important technical levels,” Sandler said. “That tells me that there are people who are still doubting the market, still short in the market, and I think there’s still plenty of fuel in the tank.”
On Wednesday, the Federal Reserve held the benchmark Federal Funds rates steady at 5.25% and said it would continue to keep an eye on inflation. It cut its assessment of current economic conditions and left the door open for policy changes in the future.