Fed Taking Eye Off Employment to Focus on Inflation

March 18, 2015 Share Print 0

The employment picture is in the rear-view mirror, and the Fed will now focus on inflation, BlackRock’s chief investment strategist for fixed income said Wednesday.

The central bank’s Federal Open Market Committee statement due out at 2 p.m. EDT will shift the market’s attention to price stability, Jeffrey Rosenberg said on CNBC’s “Squawk Box.” Some expect the FOMC to change the language it uses to signal when it will raise interest rates from near zero, using the phrase, “reasonably confident” rather than “patient.”

“If we remove ‘patience’ it’s going to be replaced with ‘reasonably confident.’ In what? In the outlook on inflation and the oil price story,” he said. “The labor market picture has clearly turned to where you no longer need zero interest rates. How quickly you normalize is really going to be about that outlook for inflation.”

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.