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Fed Will "Wait and Watch" on Rates, Economist Says

Jim Glassman, senior U.S. economist for JP Morgan Chase, told CNBC’s “Street Signs” that the Federal Reserve’s minutes show concern for growth and inflation.

“Inflation concerns aren’t new,” Glassman said Wednesday. “What’s new is the recognition that there are some downside risks to growth. I think the minutes show that (the Fed) is a little more cognizant of the two risks and it’s not just a debate about how much and when to tighten.”

He said the Federal Reserve will “wait and watch” because while there are signs of possible economic trouble ahead, the overall economy remains strong.

“The truth is, for all the trouble we see in housing, there isn’t any sign that this trouble is spreading to the broader economy as the low unemployment rate, the good job growth and the low jobless claims show,” Glassman said.

As long as inflation rate is above the Fed’s target and unemployment remains low, “The Fed is going to be cautious,” Glassman said.