Feel Free to Fight the Fed if Economy Keeps Improving

There is no need to resort to conspiracy theories to explain the Federal Reserve's recent dovish turn. They are as divided as investors on issues like growth and were spooked by market volatility in the first quarter, said Jeffrey Cleveland, chief economist for Payden & Rygel (PYACX) - Get Report . As a result, they resorted to one of the oldest plays in the book: When in doubt, do nothing. 'I don't think they are going to hike in April, maybe they go in June,' said Cleveland. 'Clearly other things are distracting them other than U.S. economic data.' Along with global risks, the Fed is also worried that the recent lift in core inflation will be transitory because inflation expectations have fallen.