Economics
US open – Can Fed live up to expectations?
Cautious optimism ahead of the decision Stock markets are edging cautiously higher on Wednesday, as investors await the outcome of the Federal Reserve monetary policy meeting. Fed Chairman Jerome Powell used his virtual Jackson Hole platform last month to announce changes to the central bank’s monetary policy framework, targeting average inflation of 2%; in effect […]

Cautious optimism ahead of the decision
Stock markets are edging cautiously higher on Wednesday, as investors await the outcome of the Federal Reserve monetary policy meeting.
Fed Chairman Jerome Powell used his virtual Jackson Hole platform last month to announce changes to the central bank’s monetary policy framework, targeting average inflation of 2%; in effect allowing for inflation overshoot after a period of falling short. Given the length of time that inflation has done just that, investors were buoyed by the prospect of an even more prolonged period of zero interest rates and perhaps even more stimulus.
While we’re not anticipating more easing today, there is an expectation that the Fed will provide further colour on the changes announced last month. What exactly does this mean for monetary policy? Can we expect more asset purchases? Negative interest rates? Yield curve control? At what stage should we factor in rate increases?
I’m not naive enough to expect answers to all of these questions today but the Fed will need to display a dovish shift from the last meeting, reflecting the commitment to the new framework. And more detail may be demanded regarding what the change means in reality. I wonder whether the Fed is positioned to disappoint.
Inflationary pressures have risen more than expected in recent months and the economy is bouncing back better than expected, as evidenced by the OECD’s new economic projections. The US is now expected to contract by 3.8% this year, an improvement on the -7.3% projection in June. Against this backdrop, I can’t imagine the Fed will be keen to make overly bold promises.
Economic Calendar
For a look at all of today’s economic events, check out our economic calendar.

BREZ Stock: SPAC Merger with D-Orbit, Space Race Leader
For investors looking to take on more risk, buying BREZ stock before the merger may be for you. Keep reading to learn more.
The post BREZ Stock: SPAC Merger…
Don’t Read This Blog Post
My inbox is overflowing, and so I have been culling some of my email subscriptions. Out: Everything hyperbolic, hair-on-fire, over the top. In:…
How Much Has Inflation And Free-Money Goosed Consumer Spending?
How Much Has Inflation And Free-Money Goosed Consumer Spending?
Authored by Mike Shedlock via MishTalk.com,
Retail sales came in on the hot…
-
Energy & Critical Metals4 hours ago
Uranium Inventories Are Scarily Low – What that Means for Energy Security, Prices and New Projects
-
Financing News23 hours ago
ROSEN, RESPECTED INVESTOR COUNSEL, Encourages Pure Gold Mining Inc. Investors With Losses to Inquire About Securities Class Action Investigation – LRTNF
-
Gold22 hours ago
Trading Places: Creasy wins the week – again – with extra substantial Galileo holdings
-
Economics22 hours ago
Key Takeaways From Powell’s WSJ Interview
-
Financing News16 hours ago
Sama Enters into Share Purchase Agreements for Sale of 5,625,000 shares in SRG Mining Inc.
-
Financing News19 hours ago
Uranium Royalty Corp. Grants Incentive Stock Options
-
Energy & Critical Metals22 hours ago
PLUG Stock Jumps 10% as Plug Power Lands Record Contract
-
Financing News20 hours ago
Bear Creek Announces Non-Brokered Financing