Balance Sheet Plan Commences in October
|U.S. Review
Balance Sheet Plan Commences in October
- The FOMC announced this week that it will start balance sheet normalization in October. The dot plot leaves open the possibility of another rate hike in 2017, but implies one less move in 2019. Officials also pushed out expectations to hit the 2 percent inflation target into 2019.
- The economic calendar focused heavily on housing this week. The key takeaway was largely that the inventory shortage was already straining the market, and the outlook for alleviating that strain with new construction was limited by major storms damaging vital southern markets, repairs for which will likely take precedence in coming months.
Global Review
BoJ Chooses to Swim Against the Tightening Tide
- Unlike many of the world’s other major central banks, the Bank of Japan (BoJ) showed no signs of turning off the stimulus spigot at its policy meeting this past week.
- Eurozone purchasing manager indices signaled faster growth in September, as both the manufacturing and service sector measures rose.
- The Canadian consumer price index showed signs of modest acceleration in August as headline and core measures were all in the ballpark of 1.5 percent year-over-year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.