Today’s insight includes a rate cut in Norway, more struggles for commodity currencies, a speech by Janet Yellen, and a meeting between the leaders of the world’s two largest economies. This is your Morning Market Report for Sept. 24, 2015.
The U.S. dollar made gains this morning as markets anticipate that central banks around the world will ease monetary policy. The anticipation comes in the wake of the Federal Reserve’s decision last week to maintain its current rate level.
The U.S. Federal Reserve on Friday left the door open to a September interest rate hike even while several central bank officials acknowledged that turmoil in financial markets, if prolonged, could delay monetary policy tightening.
Recent market turmoil should not delay the Federal Reserve from raising interest rates at least once, given that the global equities selloff and China's economic slowdown have had little effect on the U.S. economy, a top Fed official said on Friday.
The dollar gained for a fourth straight session on Friday, buoyed by calmer financial markets and generally positive U.S. data that supported the notion that the world's largest economy was on a stable growth path.
The Federal Reserve is sketching out plans to prevent an abrupt contraction in its massive balance sheet next year, when some $500 billion in bonds expire and risk disrupting markets and the U.S. economic recovery.