Stocks are starting off the week by taking a break from this month's substantial rally, amid disappointing data about industrial activity and consumer sentiment, and potential anxiety over the Federal Reserve's Wednesday statement. But despite these concerns, along with a "mediocre" earnings season, one economist said he expects stocks will continue to grind higher.
Jerry Webman, chief economist of OppenheimerFunds, said there's no way the Federal Reserve will decide to raise interest rates in the October meeting. And for a December rate hike to come into play, economic data would have to strengthen significantly.
"They have no reason to move rates higher at this point," Webman said Tuesday on CNBC's "Futures Now." "I know they've got this lingering fear of financial stability somewhere being a problem. But they want to see the whites of its eyes before they start shooting."
And until central banks are well into tightening cycles, stocks will continue to see gains, Webman said.