Fed Making it Clear: Stick With Tech, Consumer Discretionary Stocks

Investors should favor sectors that perform well in a slow growth, low inflation environment because the Federal Reserve is clearly not comfortable hiking interest rates right now, said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management (USB) - Get Report . 'Our takeaway from last week's Open Market Committee is that, given global uncertainty, the Federal Reserve is not comfortable increasing the policy rate at this point,' said Wiegand. 'The shift to a more global view will be something we continue to monitor closely.' Wiegand added that consistent improvements in the FOMC's labor market outlook will force the "data-dependent" Federal Reserve to focus more on inflation in 2016 as the key driver to future increases in the policy rate.