Lynn Reaser, economic strategist for Bank of America, told CNBC’s “Morning Call” that she believes the Federal Reserve will maintain its focus on inflation when it meets later this week.
She said the economic data are mixed. Employment is strong, new unemployment claims are down and plant utilization is high, but the housing market is a concern.
“I think the Federal Reserve will certainly acknowledge some of the recent soggy data on the economy,” Reaser said Tuesday. “They said recently that inflation seemed to be subsiding, but the latest numbers suggest that inflation is still too hot for their liking. So, I think it might be premature for the Fed to take off its guns on inflation.”
If so, that means no rate cut anytime soon.