The week that was…
It was all about the Federal Reserve as we noted it would be. In last week’s recap we said:
From this perch there has been and continues to be zero expectation for a September rate hike as the Fed doesn’t want to be seen as “political” and trying to move the market ahead of November, but the Fed is at least trying to throw some bones out there to make the market a bit less complacent.
All eyes on the Federal Reserve with a meeting Tue/Wed and a press conference by Yellen Wednesday. Since we expect nothing to happen Wednesday in terms of raising rates maybe the market will be in “relief” mode. Unless there is strong language from Yellen hinting at a December rate hike.
So the market got what it wanted and we predicted. And we saw a big rally Wednesday as is the norm when the Fed gives the market what it wants. Which is almost always the past 2 decades.
The policy-setting Federal Open Market Committee, in a 7-to-3 vote, opted to keep rates steady in what Chairwoman Janet Yellen described as a “new normal” as central banks elsewhere around the globe embark upon quantitative-easing measures.
Everyone sat on their hands Monday and Tuesday waiting for the “all clear” signal from the Fed. Once that was achieved a sturdy rally happened Wednesday and Thursday. Friday gave back about half of that.
On the economic front, news releases were non events.Continue reading