Daily Market Commentary


Get a complete view of the world as seen through the eyes of our investment professionals each and every business day shortly after the opening bell.

The information contained herein is intended for advisors for general information only and is compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy. All opinions contained in the commentary and expressed by the portfolio manager are subject to change without notice and are provided in good faith without legal responsibility. All market data is sourced from Bloomberg.​​​​​

  • Spanish equity markets are down over 1% this morning

    Tuesday, October 10, 2017 - 08:22 EDT
    Spanish equity markets are down over 1% this morning after the Spanish government announced that their police forces are ready to arrest Catalan President Puigdemont if he announces the region as an independent state.  Spain viewed last week’s referendum vote for independence as illegal with the Catalan president expected to make a statement this evening.  Brexit continues to remain in focus after Theresa May won support as she outlined her contingency plan for leaving the euro area that will help to minimize disruptions to businesses and travelers.    The U.K.
  • Canadian employment remains strong

    Friday, October 6, 2017 - 09:06 EDT
    Canadian employment remains strong adding 10k jobs in September, although slightly below consensus of +12k.  The Canadian economy has continued to add jobs every month since December of last year and is averaging just over 25k jobs created per month.  The details of the report were also positive as all the jobs created this month were full time. The participation rate ticked down 0.1% to 65.6% while the unemployment rate remained the same at 6.2%.  U.S. non-farm payrolls for September declined by 33k jobs with expectations that the U.S.
  • Minutes from the September ECB meeting were released this morning

    Thursday, October 5, 2017 - 09:16 EDT
    Minutes from the September ECB meeting were released this morning, which indicated that the reassessment to remove stimulus must be gradual and cautious.  In addition, the central bank must be mindful of market expectations on future policy.  Officials were concerned of volatility related to a rise in the euro and will continue to monitor exchange rate movements and its effects on euro area growth.  At this point in time, ECB members agreed that substantial stimulus is still needed, with initial discussions surrounding policy recalibration beginning this meeting.  Spanis
  • BOC deputy's governor remarks yesterday essentially removed the potential of another rate hike this year

    Wednesday, October 4, 2017 - 08:55 EDT
    Bank of Canada Deputy Governor Leduc remarks yesterday essentially removed the potential of another rate hike this year.  He stated that the Canadian economy has performed a lot better than expected over the past five quarters; however the economy’s growth rate is expected to decline over the next couple of quarters from its current levels.  In addition, an increase in productive capacity from new firm creation would increase growth but without necessarily creating inflationary pressures.  In regards to the Canadian dollar, he mentioned that the sharp drop in the CAD may have
  • The Canadian new issue market was active again yesterday

    Tuesday, October 3, 2017 - 08:30 EDT
    There were two Fed officals speaking yesterday with Dallas Fed President Kaplan noting that the hurricanes affecting Texas and Florida will create weakness in Q3 growth.  However, he still expects 2017 growth to measure around 2.25% or a little higher.  Similar to Yellen’s previous comments regarding a potential December rate hike, Kaplan noted that officials should keep an open mind although the committee should ‘look hard’ at need for action.  Diverging from Kaplan’s view was the more dovish Fed member Kaskhari.  Rather, he indicated that the Fed should proceed with ca
  • Yields of Spanish government bonds are wider this morning

    Monday, October 2, 2017 - 09:56 EDT
    Yields of Spanish government bonds are wider this morning following a referendum vote that saw approximately 90% in favour of Catalonia separating from Spain to become an independent republic.  The details of the vote are still unclear as it is still debatable whether the vote was legal or not, and at this point the EU has not recognized the outcome of the election.  As a result of the uncertainty, safe haven German bond yields are mildly lower this morning.
  • Canadian GDP for July came in flat

    Friday, September 29, 2017 - 09:48 EDT
    Canadian GDP for July came in flat with year over year GDP increasing at 3.8%.  In July, oil and gas output declined by 1.8% while wholesale output increased by 2%.  Housing continued to be a slight drag on GDP following Ontario’s new rules to curb foreign buyers.  July’s GDP release this morning is the first look at Q3 GDP, which looks to have taken a slight pause following two very strong quarters to start the year.  Bank of England governor Carney spoke this morning and indicated that if the U.K.
  • U.S. Q2 GDP was revised marginally higher

    Thursday, September 28, 2017 - 09:04 EDT
    The final reading for Q2 U.S.
  • Janet Yellen spoke yesterday on inflation and monetary policy

    Wednesday, September 27, 2017 - 10:38 EDT
    Janet Yellen spoke yesterday on inflation and monetary policy, which held an overall hawkish tone.  She warned markets not to underestimate the potential of additional rate hikes this year and that the Fed should also be wary of moving too gradually.  Overall, she believes that it would be imprudent to keep policy on hold until inflation reaches 2%, as there is potential for the economy to overheat if modest hikes are not introduced over time.  Following the speech, implied probabilities of a potential rate hike by the Fed in December increased by almost 7% to 69%, while the
  • ECB President Mario Draghi spoke yesterday

    Tuesday, September 26, 2017 - 09:51 EDT
    ECB President Mario Draghi spoke yesterday, indicating that the Euro area recovery has broadly accelerated, although the pass-through of monetary stimulus still needs to translate into stronger inflation.  As a result, the ECB still expects to remain patient and maintain accommodation, as there are still some uncertainties to the inflation outlook.  However, Draghi noted that the ECB sees most of the downside risk to the Euro area is mostly geopolitical.  On the central bank theme, Janet Yellen is speaking today and will address inflation, where last week she indicated that t
  • The third round of NAFTA negotiations began over the weekend

    Monday, September 25, 2017 - 08:53 EDT
    Over the weekend, German Chancellor Merkel won her fourth term.  However, Merkel’s CDU party lost seats from the last election, only securing 33% of votes.  As a result, Merkel will be required to form a coalition with other parties in order to further accomplish her political agenda.  European equity markets are mixed this morning with the Germany DAX up 0.18% and euro also mildly lower.  Otherwise, the third round of NAFTA negotiations began over the weekend that will go until the middle of this week.  At this point, it appears that negotiations have been moving r
  • Canadian retail sales rose 0.4% in July

    Friday, September 22, 2017 - 09:35 EDT
    Canadian retail sales rose 0.4% in July. In terms of volume, sales fell 0.2%, however excluding autos, retail sales rose 0.2%. Consumer spending has been persistently solid in the past two years. There appears to be no obvious signs of downside risks related to the housing market slowing down in both BC and ON. Separately, Canadian CPI rose 0.1% in August, translating into 1.4% annual growth. The average of the three Core CPI measures came in at 1.53% in August. The rise in inflation was largely contributed by surging gasoline prices during the month.
  • As expected the Fed funds rate remains unchanged at 1%

    Thursday, September 21, 2017 - 09:36 EDT
    As expected, the Fed funds rate remains unchanged at 1% and announced that they will gradually reduce their $4.5 trillion balance sheet starting in October. FOMC members’ dot plot projections implied one more 25bps hike in 2017, three hikes in 2018 and two hikes in 2019. On the inflation front, The Fed is expecting it to remain sub 2% on a 12-month basis and reach its 2% target in 2019. As a result of persistent weakness in inflation, the Fed revised long term benchmark interest rate to 2.8% from 3% previously. 
  • While awaiting today's Fed rate decision global markets are generally calm

    Wednesday, September 20, 2017 - 09:05 EDT
    While awaiting today’s Fed rate decision and press conference, global financial markets are generally calm. With a widespread expectation that the Fed will start balance sheet unwinding in October, government bond yields edged higher globally.  Investors were largely discounting other factors including Trump’s threat to North Korea in a UN speech, Hurricane Maria and another major earthquake in Mexico.
  • BPC deputy governor, Tim Lane, spoke publicly on global trade yesterday

    Tuesday, September 19, 2017 - 08:37 EDT
    BOC deputy governor Tim Lane spoke publicly on global trade, yesterday. He reiterated that the central bank is closely monitoring how the economy responds to rising borrowing costs and a stronger Canadian dollar. In the speech, he also mentioned how a strong Canadian dollar had “battered” exports in the past. As a result of his speech, the Canadian dollar fell by 1 % and odds of a 25 bps rate hike in October fell to 41.5% from 53% earlier.
  • Investors' attention is turning to the FOMC announcement this Wednesday

    Monday, September 18, 2017 - 09:21 EDT
    Investors’ attention is turning to the FOMC announcement this Wednesday. While the Feb is broadly expected to maintain the benchmark rate unchanged at the current level of 1%-1.25%, the majority of the attention will be on whether there will be details on balance sheet reduction. Current implied probability for a rate hike before the end of 2017 is 50.6%. The U.S. dollar is rebounding and stocks are opening higher ahead of the Fed meeting. 
  • U.S. retail sales for the month of August fell

    Friday, September 15, 2017 - 10:18 EDT
    North Korea launched another missile over Japan after the UN Security Council imposed the strongest sanctions on North Korea on Monday. Markets were a touch softer and viewed the current situation as a continuance of the provocation, instead of further escalation.
  • U.S. headline inflation increased by 0.4%

    Thursday, September 14, 2017 - 09:36 EDT
    U.S headline inflation increased by 0.4% to 1.9% in August, largely due to 2.8% energy prices increase causing by Hurricane Harvey. Core inflation rose by 0.2% to 1.7% in August, supported by strong service prices. Fed officials are closely monitoring the monthly changes in core inflation. On the back of better than expected inflation data, the probability of a December rate hike increased from 38.9% to 43.4%. The Bank of England kept the bank rate unchanged at 0.25% and maintained its government bond purchases at £435 billion.
  • Yesterday was a very active day in the domestic bond market

    Wednesday, September 13, 2017 - 09:39 EDT
    U.K. Prime Minister Theresa May is planning to deliver a speech on her latest Brexit negotiation strategy on September 21st . The European Union and U.K. have agreed to postpone the next round of Brexit negotiation to a date after the speech, which is expected to have “an important intervention” in the future negotiations.  Despite little progress in the Brexit negotiations, U.K. employment continues to enjoy strong job momentum. The Jobless rate fell to a 42-year low of 4.3%. Markets are waiting for BoE ‘s monetary policy decision coming tomorrow.
  • The UN Security Council approved new sanctions against North Korea

    Tuesday, September 12, 2017 - 09:02 EDT
    The United Nations Security Council approved new sanctions against North Korea after its most powerful missile and nuclear tests. The sanctions targeted to cut oil imports to 2 million barrels a year, ban textile exports and enhance shipments inspection. Although the sanctions have been described as the most extensive yet, but falling far short from the original demands from the U.S.  North Korea rejected the new sanctions and markets generally ignored the response and continued carry on with risk-on tone from Monday.
  • The U.S. dollar and U.S. Treasury yields have move higher

    Monday, September 11, 2017 - 09:10 EDT
    Hurricane Irma hit Florida with less force than expected, and with no other geopolitical news coming out over the weekend, the U.S dollar and U.S Treasury yields moved higher. Safe havens including gold, the yen and Swiss franc fell. In the meantime, Fed speakers are now in a blackout period ahead of next week’s policy meeting on September 20th. Investors are surveilling the impact of Hurricane Harvey and Irma, and also potential impacts from Hurricane Juan and Katia on the U.S economy.
  • Canada added 22,200 jobs in August

    Friday, September 8, 2017 - 09:23 EDT
    Canada added 22,200 jobs in August, higher than market expectations of a 15,000 gain. Details were weaker than the headline number. Full-time jobs decreased by 88,100, fully offset the 32,700 gain of self-employed positions. The gain in August was mainly contributed by a 110,400 increase of part-time jobs.
  • There was a flurry of new issuance in the Canadian credit market yesterday

    Wednesday, September 6, 2017 - 08:35 EDT
    Markets are softer this morning, weighting up the risks of; a potential intercontinental ballistic missile launch by North Korea; hurricane Irma moving closer to Florida; and the American debt ceiling approaching.  The risk- off tone was supported by a lack of consensus among U.S. Russia and China on how to pressure North Korea in abandoning its atomic and missile programs.  Russia supported China to introduce more retributive measures and provide a security guarantee, instead of sanctions.
  • Gasoline prices are slightly lower this morning

    Tuesday, September 5, 2017 - 10:48 EDT
    Gasoline prices are slightly lower this morning after increasing by as much as 15% over the past week.  However, Hurricane Irma is currently tracking along the Atlantic coast  and could potentially threaten the gulf coast after being upgraded to a Category 5 hurricane this morning.  WTI Crude prices have also recovered marginally off the lows from last week, sitting just below $48/barrel, as the damages to energy infrastructure caused by Hurricane Harvey continue to be assessed.  Otherwise, investors will be looking ahead to tomorrow’s Bank of Canada rate decision. 
  • U.S. nonfarm payrolls undershot expectations with 156,000 jobs added in August

    Friday, September 1, 2017 - 10:19 EDT
    U.S. nonfarm payrolls undershot expectations with 156,000 jobs added in August, versus consensus of 180,000.  There was also a negative 41,000 revision for the prior two months.  The participation rate of 62.9% was in line with the prior month, with the unemployment rate ticking 0.1% weaker to 4.4%.
  • China's manufacturing PMI increased to 51.7 in July

    Thursday, August 31, 2017 - 09:50 EDT
    China’s manufacturing PMI increased to 51.7 in July, higher than the forecast of 51.3.  China’s economy continues to be strong this year as a pickup in exports continues.  The U.S. second estimate for Q2 GDP was revised up to 3%, higher than estimate of 2.7%, and a 0.4% improvement from the first reading. This was largely due to stronger personal consumption, which rose 3.3% in Q2, compared with 1.9% in the prior quarter. Across markets, stocks gained after strong economic data.  The U.S dollar also extended gains and Treasury yields rose yesterday.
  • U.S. ADP employment for August came in at 237k

    Wednesday, August 30, 2017 - 10:08 EDT
    U.S. President, Donald Trump, responded that “all options are on the table” after North Korea fired a missile over Japan on Tuesday.  Markets interpreted it as the situation won’t escalate. Asian stock markets closed higher, followed by European stock markets. The S&P rebounded to close slightly higher. The yen dropped as demand for safe-haven assets weakened, while Swiss franc and gold maintained gains.
  • North Korea fired a missile over Japan setting a risk-off tone across markets

    Tuesday, August 29, 2017 - 09:22 EDT
    North Korea fired a missile over Japan setting a risk-off tone across markets. Stocks were weak across Europe and Asia. U.S stock futures also tumbled as safe havens including gold, the Swiss franc and Japanese Yen rallied.  Japan stated that the latest provocation from North Korea was “unprecedented, grave and a serious threat” and requested the United Nations Security Council to hold an emergency meeting.  As a result, both 10-year Treasuries and Canadian government yields are also lower by 5-6bps this morning.
  • Tropical Storm Harvey, and the devasting floods, continue in Texas

    Monday, August 28, 2017 - 09:33 EDT
    Tropical Storm Harvey, and the devastating floods, continues in Texas. Houston, the 4st largest city in America and the biggest in Texas, which is the center of the U.S. energy industry.  Approximately 25% of natural gas production in the Gulf of Mexico and more than 10% of U.S. refining capacity has been shuttered. Gasoline futures prices surged 7% in early Asian trading to the highest in two years, but WTI prices declined by 1%.
  • U.S. durable goods for July came in at -6.8%

    Friday, August 25, 2017 - 08:59 EDT
    U.S. durable goods for July came in at -6.8% below expectations of -6.0%.  The large drop over the past month was a result on unusually higher aircraft orders in the previous month following the Paris Air show.  However, core capital goods orders excluding air increased at 0.4% over the month, while shipments also increased positively at 1.0%.  The core measure indicates that economic growth continues to strengthen through equipment and business investment, which helps to broaden out the U.S.
  • CIBC was the second of the Canadian banks to report

    Thursday, August 24, 2017 - 08:48 EDT
    Fitch put out a note yesterday indicating that any failure by the U.S. to raise the debt ceiling in a timely manner would result in potentially negative implications.  This follows President Trump’s comments that he would be willing to shut down the government if provisions are not made to build a wall.  Fitch currently has the U.S. sovereign debt rating at AAA.  Back in 2011 when the debt ceiling debate almost shut down congress, S&P did downgrade the U.S. by one notch to AA+.
  • Yesterday saw a flurry of new issue activity

    Wednesday, August 23, 2017 - 08:19 EDT
    President Trump continues to drive headlines this week after stating that the NAFTA agreement will likely be terminated while he would also be willing to shut down the government over border wall funding.  In his speech, Trump indicated frustration over negotiation efforts with Canada and Mexico although the first round of meetings has only just concluded. 
  • Canadian retail sales for June came in just below expectations

    Tuesday, August 22, 2017 - 08:53 EDT
    Canadian retail sales for June came in just below expectations of 0.2% at +0.1%m/m.  Although still a positive increased for the month of June, May’s strong retail sales number was revised 0.1% lower to 0.5%.  Consumption in Canada continues to be strong for the first half of the year as job growth and access to cheap credit has been supportive for spending.  In terms of volumes, spending increased 0.5% m/m while retail sales ex autos jumped by 0.7% for the month.  New car sales were negative for the month but were offset by spending related to housing, which included fu
  • The first round of the NAFTA negotiations ended last week

    Monday, August 21, 2017 - 08:59 EDT
    The first round of the NAFTA negotiations between the U.S., Canada and Mexico ended last week with all three countries committed to wrapping up the negotiations quickly.  The U.S. has mid-term elections while Mexico has a national election next year and as a result wish to conclude the NAFTA talks beforehand.  Canada did indicate that they would not agree to a bad deal in order to accommodate the timetable for the U.S.
  • Canadian headline inflation for July came in at expectations at 1.2%

    Friday, August 18, 2017 - 08:58 EDT
    Canadian headline inflation for July came in at expectations at 1.2%.  CPI ticked higher by 0.2% from the previous month as a result of higher gasoline prices in addition to rising hotel accommodations and restaurant prices.  Electricity declined as a result of Ontario introducing legislation to reduce charges for consumers.  The common measure of core inflation held steady from last month at 1.4%.  With the Bank of Canada recently increasing the Overnight Rate by 25bps, July’s increase in inflation may point to a bottoming of the measure last month.  This would pro
  • The FOMC minutes from the July meeting were released yesterday

    Thursday, August 17, 2017 - 08:55 EDT
    The FOMC minutes from the July meeting were released yesterday, where the Fed decided to leave rates unchanged.  For the most part, new information was largely absent as Fed officials debated the likelihood that inflation will increase back to their 2% target in the near term.  Some individuals were still uneasy about inflation and whether it would take longer than expected to get back to that target.  Interestingly in the minutes, however, were several participants were in favour of starting the balance sheet tapering program last month, although most preferred to defer the
  • Second quarter GDP out of Europe continues to be positive

    Wednesday, August 16, 2017 - 09:22 EDT
    Today officially marks the first day of NAFTA negotiations between Canada, the U.S. and Mexico as the U.S.
  • Yesterday, Foreign Affairs minister Chrystia Freeland spoke about Canada’s core objectives in the upcoming NAFTA negotiations...

    Tuesday, August 15, 2017 - 09:08 EDT
    Yesterday, Foreign Affairs minister Chrystia Freeland spoke about Canada’s core objectives in the upcoming NAFTA negotiations that begin tomorrow.  She indicated that Canada won’t accept just any deal, with hopes that the three countries can work together to keep the current positive policies intact, while modernizing outdated guidelines.  Canada will resist new protectionist policies, including a new “buy America” provision.  Freeland did reiterate
  • Tensions between the U.S. and North Korea continued to be in the headlines...

    Monday, August 14, 2017 - 09:04 EDT
    Tensions between the U.S. and North Korea continued to be in the headlines on Friday, keeping some volatility in the markets.  The VIX index was just under 10 to start last week, and currently stands at 13 after rising to a high of 16 at the middle of last week.  NAFTA talks being this Wednesday, where President Trump has outlined his agenda to cut the U.S. trade deficit.  Canadian Foreign Affairs minister Chrystia Freeland will give a speech in Ottawa this morning to outline her expectations in the NAFTA renegotiation with the U.S. and Mexico.
  • U.S. inflation edged up marginally in July

    Friday, August 11, 2017 - 09:20 EDT
    U.S. inflation edged up marginally in July by 0.1% to 1.7% y/y, although below expectations of 1.8%.  CPI ex food and energy y/y continues to remain stable, similarly to last month at 1.7%.  Inflation continues to remain below the Federal Reserve’s target as a drop in lodging related to hotel and motel prices kept inflation lower.  There continues to be a decline in vehicle prices that also reflects the current weakness in U.S.
  • The U.S. producer price index fell

    Thursday, August 10, 2017 - 08:54 EDT
    The U.S. producer price index for July fell by 0.1% m/m against expectations of a +0.1% increase.  The unexpected drop in wholesale prices was the first decline in almost a year, potentially indication that inflation will remain benign.  Excluding food and energy, PPI also decreased by 0.1% with decreases in margins at chemical and equipment wholesalers.  U.S. initial claims came in at 244k, marginally higher than the previous month of 241k with continuing claims declining from 1,968k to 1,951k over the month.
  • Canadian housing starts for July increased

    Wednesday, August 9, 2017 - 08:58 EDT
    Economic data releases are again quieter in North America this morning.  However, Canadian housing starts for July increased from the prior month up 10k to 222.3k and higher than expectations of 205k.  Most of the new housing starts were in B.C.
  • WTI crude prices are holding above $49/barrel this morning

    Tuesday, August 8, 2017 - 08:57 EDT
    The economic calendar in North America is light to start the week following the Civic long holiday weekend in Canada.  In Germany, the trade surplus in June continued to widen to a ten month high that currently stands at $22.3 billion.  The details were a bit softer as exports fell 2.8% y/y while imports fell at a faster rate at -4.5% m/m.  This led to the current account balance increasing from the previous month from 16 billion euros to 23.6 billion in June.  Initial reports from the U.K.
  • Canadian employment continues to show positive growth

    Friday, August 4, 2017 - 09:05 EDT
    Canadian employment continues to show positive growth this month, adding 10.9k jobs in July versus expectations of +12.5k.  The details were positive with full time employment increasing by 35.1k and part-time jobs decreasing by 24.3k.  The participation rate dropped by 0.2% to 65.7, which decreased the unemployment rate by the same degree to 6.3%.  On average, job growth in Canada has been very strong increasing employment by 28k per month.  However, hourly wages for full time employees continue to be soft only rising by 1.2% y/y with number of hours worked up 1.9% y/y.
  • The Bank of England released its monetary policy statement

    Thursday, August 3, 2017 - 09:00 EDT
    The Bank of England released its monetary policy statement this morning leaving its key interest rate unchanged.  The central bank also maintained bond purchases steady at £435 billion in government bonds and £10 billion in corporate bonds.  However, the BOE noted that the economy remains sluggish as household incomes have been squeezed by a rise in inflation.  As a result growth expectations were revised lower for this year by 0.2% to 1.7%, with 2018 growth also cut from 1.7% to 1.6%.  June inflation stood at 2.6% with the committee expecting CPI to rise further in the
  • U.S. ADP employment for July increased by 178k

    Wednesday, August 2, 2017 - 09:24 EDT
    The economic calendar is relatively light this morning with no releases out of Canada.  In the U.S., ADP employment for July increased by 178k, just below expectations of 190k.  Although ADP is not always the best gauge for non-farm payrolls that will be reported this Friday, today’s data is still positive that private payrolls are increasing. 
  • U.S. personal incomes came in flat for June

    Tuesday, August 1, 2017 - 09:06 EDT
    U.S. personal incomes came in flat for June just below expectations of a +0.4% increase.  The prior month’s personal income increase was also revised down by 0.1% to 0.3%.  Personal spending also stalled only increasing at 0.1% for the month.  June is the third month in a row that showed slowing nominal spending, even though prices, ex food and energy, rose by 0.1% for the month. 
  • Gov. of Canada 10-year yields continue to move higher

    Monday, July 31, 2017 - 08:55 EDT
    Government of Canada 10-year yields continued to move higher on Friday following very strong GDP growth data for the month of May.  Ten yield Canada yields have now moved above the 2% mark and currently sit at the highest levels in approximately two and a half years.   The initial reaction on thirty year Canada yields were muted after the Bank of Canada raised the overnight rate by 25bps earlier in July, however long bonds are now participating in the sell-off with yields increasing by 20bps over the past week.  Growth in Canada continues to be strong with markets now pr
  • Canadian GDP came in at 4.6% y/y in May

    Friday, July 28, 2017 - 09:08 EDT
    Canadian GDP came in at 4.6% y/y in May, which was higher than expectations of 4.1%.  The data beat forecasts as a result of a rebound in crude oil production over the month, making this GDP number the fastest 12 month pace since 2000.  Oil and gas extraction along with mining accounted for more than half of the monthly gain.  The probability that the Bank of Canada raises rates again in September currently stands at 29%.  U.S.
  • U.S. durable goods for June came in at 6.5%, much higher than expectations

    Thursday, July 27, 2017 - 09:27 EDT
    The FOMC announcement yesterday was relatively uneventful as the Fed Funds Rate was left unchanged, which was widely expected.  For the most part, the statement was left mostly intact from the June statement.  The committee once again acknowledged that both headline and core inflation have declined and are running below the 2% target, although household spending and business investment continue to expand.  The single notable change was wording indicating that the normalization of the balance sheet will begin “relatively soon”, and referenced the addendum previously added to t