Failure to Launch

U.S. Review

Failure to Launch

• The Federal Reserve left the federal funds target rate unchanged at its September FOMC meeting, but lowered its forward guidance for the next few years and long term.
• Retail sales rose solidly during August, even though lower gasoline prices held down overall outlays.
• Industrial production weakened during August, and both the New York Fed and Philadelphia Fed manufacturing surveys weakened further in September.
• Housing starts fell in August but builder confidence rose to a cycle high in September, which suggests the recovery remains intact.

Global Review

U.K. Growth Continues, BoJ on Hold, Chinese I.P. Slows

• Our expectation is that the U.K. economy, which is not overly exposed to economic developments in developing countries, will continue to expand. With CPI inflation still well-below its 2.0 percent target, we also suspect the Bank of England will not need to raise rates until well into 2016. Developments this week showed that retail sales increased in August and inflation remains benign.
• In Asia this week, Chinese industrial production figures came in a shade weaker-than-expected, and the Bank of Japan opted to leave the pace of it asset purchases unchanged.

U.S. Review Failure to Launch The Federal Reserve left the federal funds target rate unchanged at its September FOMC meeting, but lowered its forward guidance for the next few years and long term. Retail sales rose solidly during August, even though lower gasoline prices held down overall outlays. Industrial production weakened during August, and both the New York Fed and Philadelphia Fed manufacturing surveys weakened further in September. Housing starts fell in August but builder confidence

(Market News Provided by FXstreet)