The market was expecting the Fed to taper their monthly Treasury security purchase by $5 Billion, from $45 Billion to $40 Billion per month. The Fed chose not to taper.
The Federal Reserve unexpectedly refrained from reducing the $85 billion pace of monthly bond buying, saying it needs to see more signs of lasting improvement in the economy. “The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington. While “downside risks” to the outlook have dimished, “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement.”
Economic Event | Period | Economic Survey | Actual Reported | Original Prior | Revised Prior |
MBA Mortgage Applications | 41530 | -- | 0.112 | -0.135 | -- |
Housing Starts | Aug | 917K | 891K | 896K | 883K |
Housing Starts MoM | Aug | 2.3% | 0.9% | 5.9% | 5.7% |
Building Permits | Aug | 950K | 918K | 943K | 954K |
Building Permits MoM | Aug | -0.4% | -3.8% | 2.7% | 3.9% |
FOMC Rate Decision | 41535 | 0.25% | 0.25% | 0.25% | -- |
Fed Releases Economic Projections | | | | | |
Fed Pace of MBS Purchases | Sep | 40.0 | 40.0 | 40.0 | -- |
Fed Pace of Treasury Purchases | Sep | 40.0 | 45.0 | 45.0 | -- |
Oh, and there was other economic stuff released today that no one is paying attention to.
John Broussard
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury
225-342-0013
jbroussard@treasury.state.la.us
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