The major US stock indices ran out of steam today. The indices have been overbought given the recent run higher and it seemed it was simply time to move lower.
Earlier today, the S&P flash PMI data come in about as expected, but was lower than the prior month:
Although lower, the silver lining is the numbers remain above the 50 level indicating an expansionary trend.
For the major indices, since August 20, (22 days or around a month of trading), the indices have done well with the Nasdaq leading the way:
Nasdaq index is up 9.07% to the recent all-time highsS&P is up 5.60% to the recent all-time highsDow is up 4.79% to the recent all -time highs.The solid gains seen over the last month are reason enough to lead to a correction lower.
Today, the
Dow fell -0.19%, S&P fell -0.55% and the Nasdaq fell -0.95%.Fed's Powell spoke today for the first time since the FOMC rate decision and although he is not a central banker on a mission, but instead is like one who is driving in heavy highway traffic,. i.e., he has both hands on the wheel and a foot ready to hit the brakes at the first sign of danger.
Key comments on monetary policy from his speech were:
“Near-term risks to inflation are tilted to the upside and risks to employment to the downside—a challenging situation.”
“Two-sided risks mean that there is no risk-free path. If we ease too aggressively, we could leave the inflation job unfinished. If we maintain restrictive policy too long, the labor market could soften unnecessarily.”
“The increased downside risks to employment have shifted the balance of risks to achieving our goals.”
“We judged it appropriate at our last meeting to take another step toward a more neutral policy stance, lowering the target range for the federal funds rate by 25 basis points to 4 to 4-1/4 percent.”
“This policy stance, which I see as still modestly restrictive, leaves us well positioned to respond to potential economic developments.”
“Our policy is not on a preset course.”
“We remain committed to supporting maximum employment and bringing inflation sustainably to our 2 percent goal.”
Fed's Bostic also spoke today and he was more concerned about inflation. He commented that the could support a future adjustment to the Fed’s inflation target, suggesting a range of 1.75% to 2.25% down the road. While not addressing the current outlook directly, he cautioned that inflation has remained above the 2% goal for more than four years, which is cause for concern. Bostic noted that businesses continue to face cost pressures and often have limited ability to absorb them without passing them on, meaning inflationary pressures are likely to persist. He emphasized that he remains worried about inflation even as discussions about the Fed’s policy framework continue.
US yields moved lower after the comments and are ending the day near the lows for the day:
2 year yield 3.588%, -1.3 basis points.5 year yield 3.668%, -2.8 basis points10 year yield 4.105%, -3.9 basis points30 year yield 4.720%, -4.1 basis pointsIn the forex market, the USD is closing mixed and little changed with the USDCHF the biggest mover of the major currency pairs. Versus the USD, the major currencies showed the following changes vs the USD:
EUR +0.10%JPY +0.03%GBP +0.08%CHF +0.11%CAD -0.10%AUD -0.02%NZD -0.14%IN other markets:
Crude oil is traing up $1.34 or2.15% at $63.62.Gold rose $17.46 and reached another record at $3791.08. It is trading at $3763Silver is trading near unchanged at $44.00 after reaching another high going back to 2011 at $44.62Bitcoin fell -$841 or 0.75% at $111.901. The digital currency traded as high as $117,968 on September 18. This article was written by Greg Michalowski at investinglive.com.Hence then, the article about investinglive americas fx news wrap 23 sep fed s powell remains cautious on fed policy was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( investingLive Americas FX news wrap 23 Sep: Fed's Powell remains cautious on Fed policy )
Also on site :
- Suspect in Mississippi synagogue fire laughed as he confessed to his dad, authorities say
- Fire crews and Hazmat teams responded to fire involving lithium ion batteries at Higuera Street facility
- No injuries reported after partial building collapse in the Bronx, officials say