Adapted from the Shirmeyer Rate Market Report.
The past week of selling in the stock market has caused some to re-think the Fed’s tapering this week. Given the volatility and the crumbling in emerging markets’ currencies, and China’s and India’s economic outlook anything is possible now. It should not be a surprise that when the Fed started to remove support that it would set up a number of issues, especially in emerging markets. If the Fed does not taper again the policy statement must be framed in a manner that makes it clear the Fed is holding back for global reasons and not because it has changed its economic growth outlook for the US. If markets think the Fed is waggling on its growth forecasts the stock market and bond markets will turn to panic. In any case, if the Fed holds off it will be a plus for US interest rates.
Consumer confidence climbed higher in January to reach its best level since August. The Conference Board’s Consumer Confidence Index jumped to 80.7 in January compared to 77.5 in December. FOMC meeting begins today with the FOMC statement coming on Wednesday.
FLOAT WITH CAUTION.
More Friday, have a great week!
Apply online at: http://premierlends.com/apply-now/
NMLS License: 1127723