CNBC Stock Blog
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Surprising Options Trades in TiVo Shares
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- Dubai's Debt Woes Signal New Era for Creditors
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Fed Audit Would Hurt Economic Prospects: Bernanke
- Russia: Bomb Caused Train Wreck That Killed Dozens
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
RSS FEED
Text Size 
CNBC News Associate
Federal Reserve policymakers are expected to hold a two-day meeting starting on Tuesday to determine U.S. interest rate policy. Sam Stovall, chief investment strategist at Standard & Poor’s, weighed in on how this week’s decisions will affect the economy.
“I don’t think the Fed is going to do anything,” Stovall told CNBC.
“They might soften their commentary to investors when they conclude their meeting on Wednesday."
"What they want to do is...make sure that the unemployment rate does not peak above 10 percent—which we think it will, and it will stay above 10 percent for all of 2010—and they don’t want to make the mistake like Japan and pull away the stimulus too quickly.”
More Market Intelligence:
With unemployment rates nearing 10 percent, Stovall said inflation should not be a concern for the economy.
“Since wages are the biggest component of inflation, I think [unemployment] is going to keep a pretty good damper on things," he said. "Also, capacity utilization now at 68 percent, close to the record low, so it’s going to be a while before inflation becomes a major issue.”
Additionally, Stovall said he doesn’t see the Fed coming up with a successful exit strategy in the near-term.
“The questioning that Bernanke got from the government indicating that they’re going to be taking a look at the all actions more closely implies that there is increased political activities in whatever Fed decisions might be occurring,” he said.
“So there might be a lot of reluctance on the part of Congress to allow the Fed to start removing itself and therefore have negative repercussions on the general people on Main Street.”
Investor Ideas:
______________________________
Disclosure:
No immediate information was available for Stovall or his firm.
______________________________
CNBC Slideshows:
______________________________
______________________________
CNBC's Companies in the News:
Freddie Mac [FRE
Loading...
()
]
State Street [STT
Loading...
()
]
General Motors [MTLQQ
Loading...
()
]
Bank of America [BAC
Loading...
()
]
Goldman Sachs [GS
Loading...
()
]
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes