U.S. stocks last week reached an important milestone by becoming the longest bull market on record. From the rubble of the financial crisis, the market has risen like a phoenix to become a vibrant symbol of economic recovery and the potency of the Federal Reserve’s easy-money policy
- The minutes said that “further gradual increases” in their target rate “would be consistent with a sustained expansion of economic activity, strong labor market conditions and inflation near the committee’s symmetric 2 percent objectiv eover the medium term.”
- ” Many officials, the minutes said, “noted that it would likely be appropriate in the not-too-distant future to revise the committee’s characterization of the stance of monetary policy” in its statement, the minutes said. Describing policy as“accommodative” would at some point “fairly soon,” no longer be appropriate, the minutes said.
⇒ COMMENTSFED SIGNALS READY TO HIKE AGAIN IF ECONOMY STAYS ON TRACK
EUROPE COMPOSITE PMI
- Overall third-quartergrowthcouldmatch the secondquarter’s0.4 percent, and indicatorsof currentactivity, employmentand priceswereallelevated, the report showed
- The ECB hascitedthe region’s“solidand broad-based” expansionasa reasonto continue with the planto end assetpurchasesin Decemberand laythe groundfor a possibleinterest-rate hikein late 2019
⇒ EURO-AREA GROWTH STAYS STRONG AS ECB PLANS TO EASE STIMULUS
- Japanese inflation failed to deliver an expected uptick in July, underscoring the persistent weakness in consumer prices that has forced the Bankof Japan to take an increasingly longer-term view of its mission to achieve 2 percent inflation
- The BOJ also lowered its price forecasts and promised to keep extremely low interest rates in place for an extended period of time, giving little impression that major progress on inflation is on the horizon
⇒ JAPAN’S STEADY JULY INFLATION OFFERS LITTLE JOY FOR BoJ
- PBoC signaled that it’s taking action to support the currency through its daily fixing
- On Sunday Italy announced it would start the process of opposing the EU’s next budget after Deputy Prime Minister Luigi Di Maio accused European member states of failing to follow through on the deal reached in June for redistributing the flood of migrants
- Fed chief at an annual conference in Jackson Hole, Wyoming, Powell defended his gradualist approach and, in the process, hardened expectations for a September interest-rate increase.
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