Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  US Economy and Credit Markets Ended Sept 17, 2021
Posted Under: Weekly Market Commentary

 
Yields rose in the middle portion of the yield curve last week in anticipation of next week's Federal Open Market Committee (FOMC) meeting. Tapering is expected to begin November 2021, according to a Bloomberg survey of economists, but Chairman Powell has indicated that the decision to taper asset purchases will be made independent of any decision to raise interest rates. With unemployment still above 2019 levels, the Federal Reserve is expected to be patient on increasing rates. As the discussion over inflation, and whether it is transitory or not continues, last Tuesday's Consumer Price Index (CPI) offered a little bit of everything, for everybody. It increased 0.3% in August, lagging consensus expectations. The CPI is up 5.3% from a year ago even with Augusts lower than expected reading. Generally, a CPI reading ahead of long-term bond yields is not a sustainable condition as historically investors demand enough yield from bonds to offset inflation. How long the market will wait to decide if the readings are transitory or not may well determine how aggressive the Federal Reserve must be in deciding on its timing for hiking rates. Industrial Production numbers, reported last Wednesday, were up 0.4% in August, but lagged consensus, partially due to worse than expected shutdowns resulting from hurricane Ida. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Tuesday: August Housing Starts (1.55M, 1.534M); Wednesday: September 17 MBA Mortgage Applications (N/A, 0.3%), August Existing Home Sales (5.87M, 5.99M) and the September 22 FOMC Rate Decision (Lower Bound 0.00%, Upper Bound 0.25%); Thursday: September 18 Initial Jobless Claims (320K, 332K), September preliminary Markit US Manufacturing PMI (60.5, 61.1); Friday: August New Home Sales (710K, 708K).
Posted on Monday, September 20, 2021 @ 9:20 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Snapshot of Growth vs. Value Investing
A Snapshot Of Bond Valuations
US Stock Markets Ended Sept 10, 2021
US Economy and Credit Markets Ended Sept 10, 2021
Some Perspective On Corrections And Bear Markets
A Snapshot Of Top-Line Growth Projections
US Stock Markets Ended Sept. 3, 2021
US Economy and Credit Markets Ended Sept. 3, 2021
September 30, 1981
Many Investors Could Be Underweight U.S. Mid- & Small-Cap Stocks
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.