The Federal Reserve policy will have greater impact on the economy than will President Donald Trump, analyst Peter Boockvar said Thursday.
“I think 2017 will be driven more by the Fed, the ECB, the BOJ, more so than what Trump actually unveils,” the Lindsey Group analyst told CNBC’s “Squawk Box.”
The Fed indicatedin December it expects to raise interest rates three times this year, which Boockvar said was the first reason for the central bank overshadowing Trump’s policy moves.
The analyst cited the European Central Bank and Bank of Japan’s quantitative easing measures as other reasons why central banks will lead the way in 2017. Quantitative easing is an attempt by central banks to artificially lower interest rates by buying government and other securities to boost the money supply.
“I think ideally, [Fed Chair Janet] Yellen, in her models, wants to raise three times for the next three years and get to her magic 3 percent,” Boockvar said, noting that bond market indicators are not pricing in three rate hikes for this year.
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