Federal Reserve Chairman Ben Bernanke told Congress Wednesday that he has confidence the economic recovery will have staying power, although the rebound won't be strong enough to bring quick relief to high unemployment. Marc Pado, U.S. market strategist at Cantor Fitzgerald, shared his economic outlook.
“It is going to be one of those jobless recoveries,” Pado told CNBC.
“So I would say we have to adjust our expectation to about 6 percent being full employment.”
Pado doesn’t expect the Fed to raise interest rates until it sees the housing crisis stabilize and employment rates start to rise.
“We might actually see the 'extended period' removed from the Fed language,” said Pado. “Then we have six more weeks before they actually indicate that they are going to change rates, so we’ve got a couple of Fed meetings before they move on rates.”
More Market Intelligence:
CNBC Data Pages:
CNBC's Companies in the News:
Bank of America
No immediate information was available for Pado or his firm.