“They basically said they can’t assess the direction of the future economy,” bond expert Bill Gross told CNBC’s “Power Lunch.” “To me that’s not only disheartening, but confusing and it suggests a Fed that is beginning to lose its benchmark.”
The comments came as the Federal Open Market Committee decided to keep rates unchanged on Wednesday, stating that the committee is “closely monitoring global economic and financial developments.”
This Fed is not depicting confidence on the future of the economy, Gross, Janus’ lead portfolio manager noted on Wednesday.
As the decision came in, the Dow Jones industrial average fell over 100 points, and stocks traded at session lows.
At the same time, a whopping 88 percent of respondents in a recent CNBC Fed survey said that they expected the bank wouldn’t hike until May. However, Gross considers that stocks are disappointed in the Fed’s decision.
“Stocks are leaning towards the impression that growth is slowing,” Gross said.