Fed's Lacker, rate rise likley in early 2015December 23, 2013 Posted by: Pete Karabatos
Richmond Fed president Jeffrey Lacker stated that the bond tapering was the right decision and Ben Bernanke’s upcoming departure did not influence the decision. He stated that on a future basis, pauses or increases in the pace of tapering would be possible and is data dependent and the funds rate is likely to move in early 2015. Lacker further stated that guidance on unemployment ”ties the Fed down a little bit less.” Lacker has generally been rather hawkish and his statements are consistent with that bias. A continued effort to wean the market off of Fed stimulus would be positive for the USD.
• U.S. consumer spending rose by .5%, the most in five months, in November as consumers took advantage of discounts in the holiday shopping season. Incomes however rose by only .2% for the month of November.
• The Chicago Fed Activity Index rose to .60% in November after falling to -.07% in October.
• Canadian GDO rise by .3% month/month in October, besting the .2% expected growth rate.
• GBP is near 2 year highs against the USD after BOE Deputy Governor Bailey said the central bank may take steps to prevent U.K. home prices from rising too quickly.
• The Chinese Yuan hit the strongest level in 20 years after the People’s Bank of China raised the currency’s reference rate.
12/24 USD: New Home Sales (Nov)
12/24 USD: Durable Goods (Nov.)
12/25 JPY: Housing Starts (Nov.)
12/26 USD: Initial Jobless Claims (Dec 21)
12/26 JPY: Jobless Rate (Nov)
12/26 JPY: Industrial Production (Nov)
12/30 USD: Pending Home Sales (Nov.)
12/31 USD: S&P CaseShiller Home Prices (Dec.)
12/31 USD: Consumer Confidence (Dec)
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