Fed tapers bond purchases againJanuary 30, 2014 Posted by: Pete Karabatos
The Federal Open Market Committee announced yesterday that it will reduce its monthly bond purchases by $10 billion to $65 billion per month, consistent with its plan to gradually scale back quantitative easing. The Fed stated that economic growth has improved in recent months and the labor markets have shown modest improvement. The policy statement on the whole was consistent with market expectations. The dollar is trading stronger today against most currencies and U.S. stocks rebounded from 2 month lows.
• U.S. pending home sales fell by 8.7% in December, the most since 2010, due in part to poor weather.
• U.S. GDP increased by 3.2% in Q4 2013 on strength in consumer spending, laying the groundwork for further economic improvement in 2014.
• German unemployment fell by 28,000 to 2.93 million, a bigger decline than expected.
• Euro-area economic confidence increased in January for the 9th month in a row on strength in services.
• U.K. mortgage loans rose in December to the highest levels since January 2008, further fueling home price gains.
01/31 EUR: Unemployment (Jan)
01/31 USD: Personal Income and Spending (Dec)
02/03 GBP: Manufacturing PMI (Jan.)
02/03 USD: ISM Prices Paid (Jan.)
02/04 EUR: Producer Price Index (Dec.)
02/04 USD: Factory Orders (Dec.)
02/05 GBP: Purchasing Managers’ Index (Jan.)
02/05 EUR: Retail Sales (Dec.)
02/06 GBP: Bank of England Policy Rate
2 Year 0.36
5 Year 1.54
10 Year 2.72
30 Year 3.65Read More