The U.S. economy added 142,000 jobs in September, when more than 200,000 were forecasted. The August numbers were revised as expected but investors got a shock as the number was lower as the upward revisions did not materialize.
The Fed transitioned out of forward guidance on monetary policy and took great efforts to instill the notion that the Fed was now "data dependent" in deciding when to remove accommodation. While its reaction function may not be fully understood, the Fed’s mandate for 2% inflation and maximum sustainable growth are pretty clear.
Global investors pulled an estimated $40 billion from emerging market assets in the third quarter, according to data from the Institute of International Finance, making it the worst quarter since the end of 2008.