Gary Schlossberg, Global Strategist of Wells Fargo Investment Institute expects to see an economic growth slowdown.
“There will be no recession, no double-digit recession as we are seeing in Europe. However, we do expect to see the economy continuing to lose some momentum,” he said in an interview with CNBC-TV18.
He believes Fed disappointed some who expected more intervention, more purchases of government and mortgage-backed securities along with extending the maturity of their purchases to try to keep a lid on longer-term interest rates.
“They also disappointed those who were expecting a bit more details on the outlook. At the end of the day, the Fed’s announcement will be viewed as dovish. They didn’t give the market exactly what they are looking for but they also said that they will continue doing what they are doing until there is substantial progress on economic growth and inflation,” he said.
“The expectation is that the Fed will do what is necessary if the economy loses more momentum than expected. The Fed will come in with even more stimulus if necessary to achieve their goals. The wild card is the fiscals support package,” Schlossberg added.
For the entire discussion, watch the video