CNBC Stock Blog

Fed Exit Plans Get 'High Marks': Fixed-Income Strategist

Federal Reserve Chairman Ben Bernanke said the Fed could begin pulling back stimulus for the U.S. economy by removing some cash from the financial system and then raising interest rates. What does this mean for markets going forward? Joseph Balestrino, senior VP and fixed income market strategist at Federated Investors, discussed his insights.

Fed Considering New Benchmark Interest Rate

“They’ve done a good job of telegraphing all this,” Balestrino told CNBC.

“This is a creative Fed putting in lots of measures and they systematically are allowing them to roll off.”

Balestrino said Bernanke’s proposal to pull back on the stimulus plan makes the Fed more transparent.

“Excluding the Fed, this would have been a total disaster…So they get high marks for most market participants, keeping things in order, the liquidity programs, the guaranteed programs and now it’s time to reverse all that,” he continued.

Balestrino believes the Fed fund rates will remain between 0 and 0.25 percent in the "foreseeable" future.

More Market Views:

CNBC Data Pages:

CNBC Slideshows:

  • Cramer's 12 Stocks to Play the Recovery


Wednesday Afternoon Earnings:


Activision Blizzard

Boston Scientific



No immediate information was available for Balestrino or his firm.