Fed Holds Off Rate Hike
|U.S. Review
Fed Holds Off Rate Hike
- The FOMC voted 7 to 3 to hold off on raising rates in the September meeting. Fed officials noted the strengthened case for a rate hike but decided to wait for more data to confirm that notion. New language added in the statement suggests the committee is priming markets for a near-term move, which we expect will take place at the December meeting.
- The housing market dominated the data calendar this week, with housing starts, building permits and existing home sales all coming in softer than expected in August. Tight inventory of available homes continues to grip many U.S. housing markets.
Global Review
Brazil and Argentina in Recession; Better Manufacturing PMI in the Eurozone
- The Argentine economy recorded a deep downturn in the second quarter battered by a very weak performance from real investment, one of the sectors the new Macri administration was counting on to boost economic growth. Meanwhile, the Brazilian recession deepened in the first month of the third quarter.
- The Eurozone showed a better-than-expected manufacturing sector in September, according to the release of the manufacturing PMI number for the month, even as the service sector PMI was slightly weaker than expected.
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