Solid economic activity continues, new Fed chair announced
MONTHLY MARKET COMMENTARY |
The Federal Open Market Committee kept the Federal funds rate in the range of 1 to 1.25 percent following its last meeting. The decision came despite notes underscoring strong economic activity and continued strength in the labor market. The market is expecting a hike again in December.
President Trump announced plans to appoint Jerome Powell, a Federal Reserve (Fed) board governor, as Fed chair to replace Janet Yellen at the end of her term in February.
Elsewhere, the Bank of England voted to hike rates for the first time in a decade putting the trajectory of U.K. interest rates more in line with the U.S. Federal Reserve.
Chinese President Xi broke tradition by unveiling his future leadership lineup which included no potential heirs, raising the likelihood of an attempt to stay in office beyond 2022. Meanwhile, the Bank of Japan kept its monetary policy steady despite the decision of its peers to wind down stimulus.