There were three dissents among the voters in this FOMC meeting which in itself is a bit unusual but the fact that two came from the “Hawkish” side and one from the “Dovish” side shows the wide range of opinions on the economy.
Provided the economy performs as well as Federal Reserve policymakers expect, the Fed will phase out large-scale asset purchases within the next 10 months. That’s a big “if” of course. The Fed has been projecting a stronger recovery each of the last four years, only to see growth average around a tepid 2%.
Gold took quite a beating in September, bucking its seasonal average monthly return of 2.3%. The political battle between President Barack Obama and Congress, China’s Golden Week, and India’s gold import restrictions likely weighed on the metal.
U.S. stocks rose, with the Standard & Poor’s 500 Index trimming its a weekly decline, as optimism grew that the lawmakers would reach a deal to end the budget impasse and avoid a default on the federal debt.
U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for a fifth straight day, as exports from China topped forecasts and corporate acquisitions fueled optimism in the world’s largest economy.
Treasuries and U.S. stocks rose as a report showing a plunge in home sales eased concern the Federal Reserve will cut stimulus efforts next month. Gold and oil rallied while the dollar weakened. Emerging-market equities gained for the first time in seven days.