Wednesday statement marked ‘full capitulation’ by the Fed: Morgan Stanley’s Wilson
Morgan Stanley’s chief equity strategist Michael Wilson says the Federal Reserve’s Wednesday decision underlined the central bank’s uber-dovish stance, which means corporate earnings are going to be paramount for stock-market investors.
Speaking to CNBC on Thursday morning, the strategist said the Fed statement was “kind of the full capitulation” by the Federal Open Market Committee, after it left rates unchanged, as expected, but also cut its projection for future rate increases this year to zero from two back in December and downgrading its 2019 economic outlook for gross domestic product to 2.1% from 2.3%.
The move comes after policy makers in January said they would pause further increases, suggesting that they feared weakening growth outside of the U.S. have the potential to harm domestic expansion.
Read the full article by Mark Decambre at Marketwatch