Reasons The Bond Market May Throw Another Fed Tantrum

Under the plan the Fed announced in June, it will start to allow a slight $10 billion in holdings to roll off the balance sheet each month _ $6 billion in Treasurys and $4 billion in mortgage bonds.

New economic projections released after the Fed's two-day policy meeting showed 11 of 16 officials see the "appropriate" level for the federal funds rate, the central bank's benchmark interest rate, to be in a range between 1.25 percent and 1.5 percent by the end of 2017, or 0.25 percentage points above the current level.

According to Sweet, the Fed's GDP forecast for growth this year could be revised slightly higher.

USA stock indexes slipped on Thursday as investors braced for a third interest rate hike this year and the United States ordered new sanctions against North Korea.

During the press conference, Janet Yellen said that the balance sheet normalization would continue as the Fed would prefer to cut interest rates in case of an economic shock.

In July, the core personal consumption expenditure (PCE) index, Fed's favor inflation indicator, rose only 1.4 percent year on year, below Fed's two percent target and also lower than the 1.9 percent in January.

Some Fed officials have warned against raising interest rates until inflation - which reflects the prices of everything from meat and cheese to houses and cars - meets the goal of 2% that they consider healthy for the economy.

Wednesday's move to unwind its massive bond holdings is yet another sign of the Fed's confidence in the economy.

"Dealers are still much divided over whether the Fed will raise interest rates in December or not".

"The Fed's balance sheet will finally be turning a corner", said Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management in Menomonee Falls, Wisconsin.

Japan's Tough Choices As North Korean Missiles Fly
Both China and Russian Federation have repeatedly called for a peaceful solution and talks to resolve the North Korean issue. The China Daily yesterday said that sanctions should be given time to bite and that the door must be left open to talks.

LOFT is a $49.95 portable battery base for the Google Home
For those wondering how LOFT attaches to the Google Home, it attaches to the magnetic base system on the smart speaker. As with the VAUX , Amazon's smaller smart speaker drops into a nook on the top, with cables plugging in at the back.

Alec Baldwin Just Won the Emmy for Playing Trump on SNL
When he hosted the show for a record 17th time in February, it got a bigger rating than when Trump hosted in November 2015. The actor said the Saturday Night Live role has allowed him to act as a "conduit" for outraged Americans.

Yellen also said the bank still believes that persistently low inflation is temporary.

Existing home sales in August from the previous month to an annualised pace of, the National Association of Realtors, said on Wednesday.

A sequence of unexpected natural disasters, inconsequential inflation and deep-rooted personnel changes at the Fed itself are the main factors favouring a more cautious assessment.

The Canadian dollar is stronger by 0.3% at 1.2256 per dollar.

Policymakers have signalled their plans for the Fed balance sheet for months in an effort to avoid rattling markets. But economic growth and low unemployment of 4.4% are saying it should.

Oil prices flirted with multi-month highs, despite a rise in US crude inventories, after the Iraqi oil minister said OPEC and its partners were considering extending or deepening output cuts, ahead of the planned meeting between OPEC and non-OPEC nations on Friday.

The Federal Reserve will begin shrinking the enormous portfolio of bonds that it amassed after the 2008 financial crisis to try to sustain a frail economy.

She also said if prices rose too quickly the bank would be able to lift rates quicker.

As expected, the United States central bank said it would begin limiting the reinvestment of principal payments on its holdings of government and agency debt by $10bn, starting in October, while the target range for the Fed funds rate was kept at between 1.0% and 1.25%. The Fed is likely to undershoot its target of 2 percent annual inflation for the sixth consecutive year.

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