Dan Greenhaus, chief economic strategist at Miller Tabak, and Michael Pento, senior economist at EuroPacific Capital, don't agree on much, but they do agree the Fed's announcement yesterday was a mistake.
"The Fed acknowledged that GDP growth was slowing," Pento says. "However, their symbolic move isn't really going to do much to boost economic growth." Greenhaus agrees the Fed needs to do more if they really want to boost the economy but notes negative economic data is also weighing on the market today, including:
- A day after its trade surplus rose to an 18-month high, China reported industrial production slowed in July, as did urban fixed-asset investment.
- Japan machine tool orders rose a weaker-than-expected 1.6% last month.
- The U.S. trade deficit rose 19% in June to $49.9 billion, its highest level since October 2008.
Greenhaus disagrees with Pento on the impact of a weaker dollar - in the short term - setting up a broader debate about the value and utility of government stimulus, which you'll see in an upcoming segment.