Markets higher, Fed policy may be “too tight”

Market were mostly higher on Thursday.

The S&P 500 was flat but the STOXX Europe 600 rose 0.6 percent and the Nikkei 225 rose 0.4 percent.

The Bank of Japan and the Bank of England both left interest rates unchanged on Thursday.

Meanwhile, National Securities chief market strategist Art Hogan predicts that the Federal Reserve will not be cutting rates again this year.

“They may well be at neutral right now,” he said. “The market is going to be OK with it,” he added, as he sees further economic growth ahead for the US.

In contrast, Barry Bannister, chief equity strategist at Stifel, thinks that “the policy setting remains too tight” and that there is now a risk of recession.

“Our view is either to expect more flight to safety because a recession looms, or await more weakness that coerces policy makers to go further,” he said.