The Fed won't raise rates for at least the next six months, says expert from CNBC.
Jurrien Timmer, Fidelity Investments director of global macro, joins "Squawk on the Street" to discuss Chinese trade, Q4 earnings and a more dovish Fed.
Timmer says:
• It's tough to call a market bottom.
• Fed will tighten less, not ease
• Future company earnings will be weaker
• There's little evidence of an oncoming recession
On rate hikes:
My assumption is that the Fed is done. If growth lives up to the Fed's expectations, and the economy continues to grow above potential, which is certainly where it was last year, then maybe they put another hike or two back on the table, but my assumption is that the Fed is basically saying, "we're neutral, maybe we go up down the road, maybe we go down. Really, the balance sheet is the key ingredient; that is what the markets were cheering yesterday, and what the markets were jeering back in December, during that press conference.
What is the value of quantitative tightening?
If that's a surrogate rate hike, how much is it, and is the Fed still too restrictive? My sense is that it's not, that the economy is in good shape, led by the consumer, that there's no recession in sight for the U.S. and that the Fed possibly could go a little bit more. I think for the next 6 months we shouldn't expect anything from the Fed.
Video © CNBC
