I’m being spoiled by the Wall Street Journal today. First there was this: Russian economic and market turmoil … is it contagious?
And now … 5 things to watch at the December FOMC meeting
In brief:
1. Many observers expect the Fed to drop from the statement its pledge to hold short-term rates near zero for “a considerable time.”
- Investors would take that as a signal the central bank has enough faith in the recovery to begin preparing for interest rate increases in mid-2015.
2. News of surprisingly strong job growth last month raised hopes the labor market might be finally entering a more period of more robust growth that could generate wage gains and push inflation back up to the Fed’s elusive 2% target
3. Fed officials’ new estimates for growth, inflation and unemployment could reflect the view that the oil price slide will provide a boost to the consumer-driven U.S. economy
4. The Fed could again note the recent decline in market-based inflation expectations to multiyear lows
- Fed officials could discuss in the meeting potential risks to financial stability posed by the rapid descent of crude prices
5. Overseas:
- The eurozone continues to flirt with recession
- The European Central Bank is widely expected to take further policy actions
Could add to volatility in foreign exchange markets, further boost the dollar & push inflation lower in the US
That’s it in brief but the article is ngated and cane be read here
