Economists El-Erian, Dolan & Brusuelas React To March Fed Rate Decision

As the Federal Reserve's decision to lower its forecast for the number of interest rate hikes in 2016 circulates, economists are reacting.

RSM Chief Economist Joe Brusuelas said the Fed has abandoned its data dependent position.

"One gets the sense that with the unemployment rate moving toward 4.5 percent and core inflation moving ahead of the Fed forecast," he admitted, "that the Fed is simply going to risk falling behind the curve due to risks in the external sector and a business cycle that is long in the tooth."

Brian Dolan, Head Market Strategist at DriveWealth, said the Fed's dovish tone indicates risk sentiment and risk assets should respond positively. Reiterations that the U.S. economy is recovering were weighed down by the absence of inflation pressures.

Allianz Chief Economic Adviser Mohamed A. El-Erian told Benzinga the Fed is forced to manage a balancing act. "The Fed is having to cautiously balance the gradual economic improvement at home with the challenging international environment," El-Erian said immediately following the announcement.