Market clams down, digests idea of Fed tapering
According to Forbes, the Federal Reserve has moved into the background as the market digests the possibility of a reduction in quantitative easing and turns its focus to Syria.
Market freak outs about the Fed beginning to leave the market no longer dominate trader chatter. Yet, with the FOMC meeting around the corner (scheduled for September 17 and 18 with an ensuing press conference by the Chairman), it is slowly coming back to the fore.
“Claims continue to signal no let-up from the recent pace in employment growth, which has been strong enough to keep unemployment trending down,” said HFE’s chief economist, Jim O’Sullivan, who added, “if anything, claims are suggesting further acceleration.” The four-week average in jobless claims ticked down to 329,000, from 332,000 previously.