Art Cashin, the head of New York Stock Exchange floor operations for UBS, said he doubts the Federal Reserve will be able to raise interest rates again this year because of underlying weakness in the U.S. economy.
“The Fed is going to have to wake up. I don’t think the economy is as good as it looks,” Cashin said on CNBC. “The inflation numbers were not good. Retail sales were not good.”
Cashin spoke one day after Fed policymakers approved a 0.25 percentage point hike, the second increase of 2017 and the highest in nine years. The central bank forecast another rate increase later this year, alongside efforts to reduce its trillion-dollar holdings of U.S. government debt.
The economy grew at a 1.2 percent annualized rate in the first quarter, slowing from the 2.1 percent pace in the October-December period. The Atlanta Fed forecast that economic growth will accelerate to