All Eyes on the FOMC Meeting
All Eyes on the FOMC Meeting
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Friday Close) 3,340.97 +1.78 (0.053%)
NASDAQ (Friday Close) 10,853.54 −66.05 (0.60%)
FTSE 100 (5 PM IST) 6027.22 -4.87 (0.08%)
NIFTY 50 (Today's Close) 11,440.05 −24.40 (0.21%)
USDINR (5 PM IST) 73.50 (1 Year +3.51%)
All Eyes on the FOMC Meeting
FOMC’s September meeting, retail sales, and consumer sentiment are the key highlights for the week as investors look to get over recent volatility in equity markets.
The Federal Open Market Committee meets Tuesday and Wednesday – the first time after announcing the new monetary framework. The essence of the framework being, the FOMC will not raise interest rates if the inflation rates remain below the 2% mark.
The Board of Governors is yet to agree on implementation details of the framework, and the Committee is in no immediate hurry to invoke the policies.
What is the FOMC?
The FOMC is a branch of the Federal Reserve System that determines the direction of the monetary policy. The 12-member committee comprises of seven Congress-appointed board of governors and five Federal Reserve Bank Presidents. The Committee “secretly” meets eight times each year, an event of much interest for Wall Street.
The federal fund rates – the interest rate charged by commercial banks to borrow and lend excess reserves to each other overnight – is expected to remain close to zero. For the foreseeable future, economic recovery will remain slow, and inflationary trends, soft. Federal Reserve Chair Jerome Powell is expected to re-promote the de-linking of employment and inflation.
FOMC’s statement is expected to strike a cautious note regarding the post-pandemic economic recovery. This will be in line with the retail sales data due to be released on Wednesday. The consensus expectation is for August to show a 1% month-over-month growth, compared to a 1.2% gain in July, marking a fourth straight increase in monthly retail sales.
On Friday, the University of Michigan releases its closely watched Survey of Consumers. It is expected to show a marginal increase in consumer sentiment to 75.0 in early September, from 74.1 in August.
Newsworthy 📰
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Twist in the Sale: ByteDance 'to partner with Oracle' in the US after rejecting Microsoft bid (MSFT -0.65%, ORCL -0.58%)
All in One: Apple One services bundle could be launched within days (AAPL -1.39%)
Tech IPOs This Week 📅
September 15 - JFrog (FROG) IPO (Price range: $33-$37)
September 15 - Snowflake (SNOW) IPO (Price range: $100-$110) - Available on Winvesta soon after IPO
September 17 - Sumo Logic (SUMO) IPO (Price range: $17-$21)
September 17 - Unity Software (U) IPO (Price range: $34-$42)
Fun Fact of The Day 🌞
The speed of a computer mouse is measured in "Mickeys
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