Wednesday, September 18, 2013

It's The Economy Stupid: Fed Doesn't Taper

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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