020 7898 0500Donald Trump appears to be a big fan of using the word ‘loco’ at present. He first rolled it out during a press conference which hailed the trade agreement with the US, Canada and Mexico and even explained it was a reference to Mexico for those who weren’t already aware. Then yesterday he used it again, except this time it was in reference to the Fed. It is currently unclear how it related to Mexico this time around.
The president was blaming Wednesday’s drop in the stock markets on the Fed who, he claims, is being too aggressive. So inflation data which came in below expectations should put a smile on his face. Having said that, the markets are still 98% certain that there will be a rate hike in December, but it could alter their stance throughout 2019. There have been three rate hikes in 2018 so far and it is almost certain there will be four before the year is out.
We also saw initial jobless claims up to 6 October 2018 which showed claims rose by 7,000 to 214,000. The markets had been expecting a drop to 206,000. At least some of these claims can be attributed to the lasting effects of Hurricane Florence, but the employment market in the US is still extremely strong.
Today is quiet in contrast, but we will see the University of Michigan’s preliminary consumer sentiment reading. We might even see another attack on the Fed from Trump – he has criticised the central bank three times now in as many days.
