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Tuesday, September 16, 2014

Wednesday: FOMC Statement and Press Conference, CPI, Home Builder Confidence

by Calculated Risk on 9/16/2014 08:01:00 PM

More previews on the FOMC statement and press conference:

From Jon Hilsenrath at the WSJ: How the Federal Reserve Could Tweak ‘Considerable Time’

"Given the economic backdrop, they don’t want to send a signal right now that rate increases are imminent,” Hilsenrath said. “I think what they do, at the end of the day, is they qualify it.” ... One of the headlines they’re going to come out with I expect to be formalizing some of their exit plan,” Hilsenrath said. “It becomes, in their mind, a lot for the market to digest if they announce their exit strategy and change their guidance at the same time."
From Robin Harding at the Financial Times: Money Supply: A “considerable” challenge
The bottom line is that “considerable time” may survive in some form on Wednesday, but if so, I’ll be surprised if there is not a significant change to the statement that sets up its eventual departure.
excerpt with permission
• At 7:00 AM ET, the Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.

• At 8:30 AM, the Consumer Price Index for August. The consensus is for no change in CPI in August and for core CPI to increase 0.2%.

• At 10:00 AM, the September NAHB homebuilder survey. The consensus is for a reading of 56, up from 55 in August. Any number above 50 indicates that more builders view sales conditions as good than poor.

• At 2:00 PM, the FOMC Statement. The FOMC is expected to reduce monthly QE3 asset purchases from $25 billion per month to $15 billion per month at this meeting.

• Also at 2:00 PM, the FOMC projections will be released. This will include the Federal Open Market Committee (FOMC) participants' projections of the appropriate target federal funds rate along with the quarterly economic projections.

• At 2:30 PM, Fed Chair Janet Yellen holds a press briefing following the FOMC announcement.