Mark Zandi: Fed independence is critical for markets and the economy

Moody’s Analytics’ Mark Zandi said underlying job growth remains soft, suggesting labor momentum is still weak. He expects inflation to ease as wage growth cools and believes the Fed is likely to keep interest rates unchanged in the near term. Net message is mildly cautious for rate expectations and growth sensitivity, but not a clear shock.

Analysis

Moody’s Analytics’ Mark Zandi said underlying job growth remains soft, suggesting labor momentum is still weak. He expects inflation to ease as wage growth cools and believes the Fed is likely to keep interest rates unchanged in the near term. Net message is mildly cautious for rate expectations and growth sensitivity, but not a clear shock.