NEW YORK (TheStreet) -- Equities and interest rates swayed, as usual, following the Federal Reserve's release of its FOMC statement on Wednesday, independent trader Ross Greenspan told TheStreet's Jill Malandrino.
Greenspan said interest rates had a positive reversal following the FOMC statement, but again went lower following this morning's Chicago PMI data. The flip-flopping suggests the market is growing more uncertain, especially with a looming tapering date from the Fed, he said.
Malandrino said the Fed is having less and less effect on the stock market following its "no taper" announcements. It would appear investors are starting to shrug off this news, perhaps growing tired of quantitative easing.
From an interest rate perspective, Greenspan suggested the timing of tapering is now the biggest concern, especially since the Fed put it back on the table for December.
However, he found it highly unlikely that would be the case and suggested that March or April would be more appropriate for the commencement of tapering. Along with the timing of tapering, the severity would also play an important role.Greenspan added that the zero interest rate environment is not having the same effect as before and noted that demand for credit is falling. He concluded that the Fed's stimulus is beginning to have the opposite effect on the economy than the Fed intended. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell