Oil Rout Shouldn’t Derail the Data Dependent Federal Reserve’s Rate Hike

The worrisome slide in oil prices over the past few trading sessions isn’t expected throw the Federal Reserve off course for a rate hike this week. ‘The [Fed] is data dependent, not market dependent,’ said Jerry Webman, chief economist at OppenheimerFunds, based in New York. ‘They’re going to try and not to appear to respond to what specific markets are doing.’ On Monday, West Texas Intermediate crude oil fell below $35 a barrel, nearing its lowest point since 2004, as OPEC fails to reduce production levels. ‘I think there was some criticism in September and October, when they didn’t raise rates, of watching markets more than they’re supposed to as opposed to the longer-term [factors] in the economy,’ Webman added. Webman speaks with TheStreet’s Scott Gamm.