On Tuesday, the U.S. Federal Reserve began its two-day monetary policy meeting, but during the trading session financial market traders shifted their focus to the United Nations, where U.S. President Donald Trump tried to encourage members to confront threats from rogue nations like North Korea. In a speech before the United Nations General Assembly, Trump … Continue reading Fed Starts Monetary Policy Meeting, Trump Speaks to UN
U.S. equities finished mixed on Tuesday as investors looked ahead to the conclusion of the Federal Reserve’s two-day policy meeting on Wednesday expected to feature the start of “quantitative tightening” — the process by which its bloated $4.4 trillion balance sheet will be rolled back.
The S&P 500 advanced 0.1% to 2506.65, a new all-time high, while the Dow Jones Industrial Average rose 39.45 points, or 0.2%, to 22,370.80, also a record. Yippee! The new highs came as the Fed began their two-day meeting at which it's expected to announce the start of its balance-sheet shrinking. NatWest Markets' Brian Daingerfield and team don't expect the Fed to "push the envelope." They explain: If we are right, we aren’t expecting tomorrow’s FOMC decision to really push the envelope further, in either direction, and at the end of the day the dynamic of the FOMC signaling gradual rate hikes while the market continues to price well below that possibility will remain in place.