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Deflation Would Force Fed's Hand: Art Cashin

Federal Reserve Bank Chairman Ben Bernanke
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Art Cashin, UBS Financial Services' director of floor operations, expects nothing new will come out of the Federal Reserve's statement after its meeting today, he told CNBC Wednesday.

When the Fed statement comes out, "we’re going to have not quite two hours to diagram all the sentences and see if he used the passive periphrastic in any place and then wait and ask Mr. Bernanke what it all means. I don’t see anything new."

He said the Fed implemented its quantitative easing program, which ends June 30, "because of the deflationary threat and while [the Fed] will bemoan the weak economy, it’s going to take a little dose of deflation again to probably get them off the dime."

Cashin said Wall Street had no reaction to events in Greece, where the government narrowly survived a vote of confidence and is expected to impose new austerity measures.

Art Cashin's Trader's Edge

"It's another case of moan and postpone. It's not a positive event, it’s just a non-negative," he said.

"There was short covering yesterday in case there was a strong reaction when the vote of confidence went through. When none appeared around the globe, I think that’s why you’re seeing some disappointment this morning."

Cashin said FedEx's earnings were good, but "You have to look at the international side of things" when it comes to the Number 2 package delivery company . "I’m not sure that helps Main Street America."

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Disclosure information was not available for Art Cashin or his company.