Full of sound and fury, signifying nothing. As usual, Shakespeare said it best. After much anticipation and fear that the Fed would remove its “considerable time” language, the statement left that phrase and stopped short of signaling when interest rates would begin to rise. Chairwoman Yellen emphasized in her press conference that there is “no mechanical interpretation of what ‘considerable time’ means,” thus market expectations will likely fluctuate with each data release over the coming months.
Somewhat overshadowed by the FOMC decision this week, China injected 500 billion yuan into the five largest banks this week to help ease a pre-holiday cash crunch and tame any potential spikes in short-term rates. Experts are unsure if this is the start of an easing cycle given the recent weakness in the data, though most agree that this amount isn’t enough to spur economic growth. With the Fed, the Alibaba IPO, Scottish referendum all out of the way, and little news on the foreign policy front, markets are breathing a sigh of relief – for now, anyway.
The CFP hosted a a very successful conference on market fragmentation, fragility and fees with FINRA on Wednesday, September 17th. Stay tuned for the key takeaways from that event over the next week.
China’s Slowdown Seen Yet to Bottom Even After PBOC Acts
FOMC Press Release
The WSJ’s Jon Hilsenrath’s take on the Fed decision
Dark Pools Confront More Transparent Future Amid Threats
SEC rule could push trading costs higher
Sanctions Over Ukraine Put Exxon at Risk
Central, East Europe Brace for Energy Shortages as Russian Gas Flows Fall