Here is what happened in the Capital Markets this week.
The Weekly Bottom Line (please click link to open)
The Weekly Bottom Line, courtesy of TD Economics, includes a review of market performances, recent key economic indicators, a calendar of upcoming key economic releases, and other relevant data. The highlights from this week’s report include:
· The Fed hiked rates by 25 bps this week as widely expected. But, the communiqué dropped the reference to policy remaining “accommodative”. Interpretations regarding this change led to volatility in bond yields and equities.
· The debate on textual changes in the Fed statement detracts from the main point: the Fed remains committed to additional tightening – a message echoed by a broadly-unchanged rising interest rate path in the Fed dot plot.
· Despite not being all positive, economic data reaffirmed the notion that the U.S. economy remains on solid footing. Of note, real personal spending rose 0.2% in August, keeping our tracking for Q3 consumption above 3% (ann.).