The Federal Reserve came out of its May FOMC meeting last week with a decision to leave interest rates unchanged. US equity markets (^GSPC, ^DJI, ^IXIC) have begun to price that in as stocks continue to see gains, but could there be something different on the horizon?

Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus joins Catalysts to give insight into the Fed's monetary policy and market movements as interest rates remain steady.

"Our expectations here are that near-term, we're bound to have volatility. The longer it takes the Fed to actually give the market an idea that it wants to believe as to when it's going to cut rates, that's all another story," Stoltzfus affirms. "Our thought is the risk in terms of volatility increases the longer the Fed remains on hold, and the economy continues to slow. The question will be, when does the economy go into a recession? We think the Fed, thus far, after two years of raising rates and pausing — 11 hikes, 7 pauses now, with no recession — has probably got a good chance to avoid a recession here."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino