The UBS Financial Services' director of floor operations said the central bank would find it difficult to reaccelerate after easing down to 25 basis points.
Art Cashin says the Federal Reserve can't go back to higher interest rate hikes after easing down. "They made the mistake, if you would, of beginning to decelerate. They went from 50 [basis points] down to 25. If you reaccelerate, if you go back up to a 50, that tells the market there's a good chance you made a mistake. It's a kind of 'uh oh' move.
That follows Thursday comments from Atlanta Fed President Raphael Bostic who said he's "firmly" in favor of 25 basis point rate hikes , instead of the 50 basis point increase some other Fed officials have called for. Stocks reacted favorably to those comments, with all three major averages on pace for a positive week . Regardless, Cashin said he expects trouble ahead for markets, and urged investors to keep an eye on some technical levels. He's watching for a breach of the 4.
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