U.S. Markets close in 5 hrs 23 mins

Experts React To The Fed's Pause

Jayson Derrick

The Federal Reserve said Wednesday there will likely be no interest rate hikes in 2019, marking a reversal from a previous forecast of two increases this year. 

Maley: More Important Issues To Discuss

The Federal Reserve's comments on interest rates in 2019 should be taking a back seat to the new clarity on the central bank's balance sheet runoff strategy ending around September, Miller Tabak Managing Director Matt Maley told CNBC Thursday.

Ahead of Wednesday's announcement, many experts were expecting one rate hike to come in the fourth quarter, he said. 

The Fed has now offered a timetable for when it will halt the balance sheet runoff, and this is more important news, Maley said, adding that it's important to recognize that this is not a signal that the Fed will begin easing the balance sheet.

Seymour: 'People Are Worried About Growth'

The Federal Reserve's Wednesday announcement amounts to a "downgrade [of] 2019" to zero rate hikes, with only one increase now expected in 2020, Seymour Asset Management CIO Tim Seymour separately told CNBC. The Federal Reserve has likely become more dovish and cautious in its stance, as "people are worried about growth," he said. 

"You can't have low rates and a very strong economy all at the same time." 

Related Links:

Doves Fly On Street: Stocks Jump After Fed Keeps Rates Unchanged, Signals Easy Policy

Today's Pickup: Federal Reserve's 'Patient' Approach Leaves Experts Guessing

Screenshot courtesy of CNBC. 

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.