Stocks opened lower on Tuesday amid jitters about the Federal Reserve's two-day policy meeting. What should investors expect going forward? Joseph Balestrino, senior vice president, portfolio manager and fixed income market strategist at Federated Investors, shared his insights.
“The earnings picture is really good, the economy is looking pretty good,” Balestrino told CNBC.
“However, the consumer is not there yet.”
The Fed is slated to kick off its rate-setting meeting with the latest decision and statement due Wednesday afternoon.
“The Fed’s been very clear and they’ve set conditions for their extended language,” he said.
Balestrino said housing and employment numbers have yet to see a recovery.
“What’s keeping them at bay is inflation and inflation expectations remain low," he said. "Until you see some give-back on all of those, they don’t need to tighten in anyway.”
- Watch Balestrino's Previous Appearance on CNBC (Feb. 10, 2010)
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No immediate information was available for Balestrino or his firm.