Dolan: Fed Walking 'Fine Line,' Consumers And Investors 'Should Be Wary'

The Federal Reserve announced on Wednesday afternoon that it was, once again, leaving its benchmark interest rate unchanged. While the announcement did not add much new information, it did indicate that the FOMC is confident on the U.S. economic outlook – triggering speculation about a possible June hike.

After the announcement, Benzinga contacted Brian Dolan, Head Market Strategist at DriveWealth for comments. The expert shared, “The Fed is walking a fine line between acknowledging recent weakness and trying to justify the need for future rate hikes. Rate hike hawks will be emboldened, but the rest of us, consumers and investors, should be wary.”

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He continued, “Dropping the reference to global risks is appropriate since markets stabilized, but the mention of soft exports and household spending suggest the Fed is still far from another hike.”

“Barring unambiguously positive data between now and June, I think the Fed bides its time," Dolan concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.