The Federal Reserve ought to signal that it's ready to back off the
strong monetary easing policies it put into place during the financial
crisis, Kevin Ferry of Cronus Futures Management told CNBC.
Ferry said he would like to see the Fed move
away from the so-called "zerp"—zero interest-rate policy—but doubts
that will happen until "well into the middle of next year."
The extremely accommodative Fed policies are making the market antsy, he added.
"At least come off the pedal enough to let the
market weigh in on it," he said. "They've done a lot of great things, a
lot of things we thought they should do, and I think that they should
be commended for them. But it's time to move on now and I think that's
where the volatility comes from."
Investors
should get a much clearer position about the Federal Reserve's position
on interest rates following this week's meeting, he added.
As
opposed to recent meetings when the central bank has been cagey about
its exit strategy from its monetary easing policies, this meeting could
be be different.
"There
is no doubt that they are going to embark on a very strong and unified
communication program, but there is going to be debate about how they
should do that," Ferry said.
"There
will be a unified approach more vocally through the president and
whatnot to say this is what the exit strategy will look like. I think
they're going to really step up the talk," he added. "There's going to
be a difference between policy, which is accommodative, and the level
of rates, which is emergency."
Source: cnbc.com
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