Mark Zandi: Economy Strong Enough to Withstand More Rate Hikes

The U.S. economy can handle additional interest rate hikes, according to Moody's Analytics' chief economist, Mark Zandi. 'I think the economy is fine,' he said. 'I think growth is solid - we're creating all kinds of jobs and that will become evident as we get more jobs numbers,' He said the current state of the economy justifies higher interest rates. In terms of last Friday's dismal May jobs report, Zandi doesn't think anything has fundamentally changed in the economy's prospects, but he said the weak number will keep the Federal Reserve more accommodative and takes a June rate hike off the table. 'We have to make sure [the May jobs report] is an outlier,' he said. 'Until that's clear, I don't think they can raise rates,' he said. He thinks a June rate hike is off the table and sees a 50 percent chance of a liftoff during the central bank's July policy meeting and if not then, a 'very high' probability of a September move. TheStreet's Scott Gamm reports from Wall Street.