Wall Street is expecting the Federal Reserve to stay in a ‘wait and see’ mode this week, as the latest economic data further solidified the view that there’s no reason for the Fed to move on interest rates anytime soon. Retail sales declined in both January and February, raising some concerns about the strength of consumer spending. The general view on Wall Street is, for the Fed, there’s no harm in waiting, especially with inflation lacking. ‘Even in our view, we’re not going to have two percent inflation by the end of this year. So it may even be beyond June than we wait for the first Fed move this year,’ said John Silvia, Chief Economist at Wells Fargo. Silvia expects the Fed will comment on the economy’s solid job gains, and more stability in the financial markets, when it releases its statement about the meeting Wednesday.
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