FOMC Preview
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What’s in Today’s Report:
- FOMC Preview
- Empire State Manufacturing Index Takeaways
- Chart: Equal-Weighted S&P 500 Index Hits Fresh Record
Futures are rallying ahead of key data on U.S. consumer spending as rates markets continue to price in better odds of a 50 bp rate cut from the Fed ahead of tomorrow’s FOMC decision.
Economically, the German ZEW Survey disappointed overnight with Economic Sentiment plunging more than 15 points to 3.6 vs. (E) 17.5.
Looking into today’s session, focus will be on economic data early with Retail Sales (E: -0.3%) being the most important release to watch, but Industrial Production (E: 0.1%), and the latest Housing Market Index (E: 40) will also be closely monitored.
There is one Fed official on the calendar to speak today: Logan (10:00 a.m. ET), but her remarks have been pre-recorded and therefore should not move markets with the September FOMC meeting getting underway this morning.
Finally, there is a 20-Yr Treasury Bond auction at 1:00 p.m. ET that should not materially impact markets unless there is a significant discrepancy between the when-issued yield and yield-awarded that shows weak demand (higher yields), as a subsequent rise in yields could pour some cold water on the so-far-dovish money flows ahead of the Fed decision.
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