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A Tale Of Two Economies

David Wyss, chief economist at Standard & Poor’s, told CNBC’s “Morning Call” that he expects the Federal Reserve to cut interest rates this summer.

“I think the economy is definitely weakening,” Wyss said Thursday. “I think the housing sector in particular and the subprime market is a concern for the Fed. I think that sometime over the summer we’ll see a rate cut.”

But Robert Brusca, chief economist for Fact & Opinion Economics, looks for a rate hike late this year.

“I don’t agree that the economy is weakening,” Brusca said. “This is a tense problem – the economy has weakened. The question is: What role bad weather played in some of these weaker numbers? (The Federal Reserve will) change by 25 basis points when they make a shift and it won’t be until late in the year.”