tyb's
Market Report-FOMC edition
That was a bit fugly into the close especially the NASDAQ
Stocks erased earlier gains and turned mixed Wednesday afternoon as investors considered the Federal Open Market Committee’s (FOMC) September monetary policy statement and remarks from Federal Reserve Chair Jerome Powell. Officials signaled that rates would remain near-zero through 2023, as policymakers look to boost the virus-stricken economy. In its monetary policy statement Wednesday, central bank officials reiterated that “the path of the economy will depend significantly on the course of the virus.” The Fed forecast a 3.7% contraction in real GDP and an unemployment rate of 7.6% by the end of the year, versus its June outlook for a 6.5% GDP contraction and jobless rate of 9.3%. The Fed’s updated Summery of Economic Projections released Wednesday showed US central bank officials anticipate that rates will remain near zero through 2023, the longest duration included in their projections.
The Fed added that it would continue its current Treasury and mortgage-backed securities purchases “at least at the current pace to sustain smooth market functioning and help foster accommodative financial conditions.”
Investors on Wednesday pushed longer-term U.S. Treasury yields to their highest levels this week and steepened the yield curve after the U.S. Federal Reserve said it would keep interest rates near zero for some time. As expected, the Fed promised to keep rates near zero until inflation is on track to "modestly exceed" the U.S. central bank's 2% inflation target. The change in guidance was part of a policy shift announced last month. The Fed's stance drove down prices and drove up yields on Treasuries, especially on longer-term bonds whose value is more sensitive to inflation expectations.
U.S. consumer spending appeared to slow in August as extended unemployment benefits were cut for millions of Americans, offering more evidence that the economic recovery from the COVID-19 recession was faltering. The U.S. dollar gained on Wednesday in choppy trading after the Federal Reserve kept interest rates pinned near zero and said it expects the U.S. economic recovery from the coronavirus crisis to accelerate with unemployment falling faster than the central bank expected in June. Stronger Chinese data for August on Tuesday had weighed on the greenback as investors price for the prospect that other regions will see a faster economic recovery from coronavirus than the U.S.
https://www.reuters.com/article/global-forex/forex-dollar-higher-after-fed-upgrades-economic-outlook-idUSL1N2GD20G
https://finance.yahoo.com/news/stock-market-news-live-september-16-2020-222127253.html
https://www.marketwatch.com/investing/bond/tmubmusd10y
https://finance.yahoo.com/quote/%5EIXIC?p=^IXIC
https://www.marketwatch.com/investing/index/dxy
https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart