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Livesquawk - Closing Wrap - Tuesday 21.09
Closing Wrap - Tuesday 21.09
Headlines
  • Fed Faces Calls To Remove Officials Over Trades They Made While Setting Policy
  • US House To Test Republican Roadblock In Tuesday Debt-Limit Vote
  • Iran Says Nuclear Talks Will Resume Within ‘Next Few Weeks’
  • OPEC+ Struggles To Pump More Oil To Meet Rising Demand
  • Europe Mulls French Request To Delay Trade, Tech Talks With US
  • UK's Debut 'Green Gilt' Sale Draws Blockbuster Demand
  • UK PM Johnson Discussed Taxation With Amazon's Bezos
  • Justice Department Preparing To Challenge American-JetBlue Alliance
  • DraftKings Makes $20 Bln Cash, Stock Offer For Entain
Commentary
FOMC: Walking In A Winter Taperland?

September’s FOMC meeting and ensuing rate decision is in the eyes of many analysts a dry run for either a November or December announcement on the start of quantitative tightening.

 

Economists widely anticipate the FOMC to announce on Wednesday its intentions to hold the benchmark interest rate in the current range of 0% to 0.25% and to maintain monthly asset purchases at USD 120bln (or USD 80bln in treasuries and USD 40bln mortgage-backed securities).

 

Alongside the policy announcement, rate-setters will publish their economic outlook, aka the Summary of Economic Projections (SEP). This happens four times a year and covers forecasts for GDP growth, unemployment, inflation, and the appropriate policy interest rate.  

 

Tapering of the current quantitative easing programme is baked into market expectations, but exactly when it is announced is still up for debate. Danske Bank’s chief analyst, Mikael Olai Milhøj said, “The Fed is in a difficult position amid slower growth and still high inflation. Given the weak jobs report and lower-than-anticipated inflation in August, we expect the Fed will refrain from providing more details at this meeting, as the Fed has already made it clear that tapering is set to begin before year-end.” (LiveSquawk – Continue Reading)

US House To Test Republican Roadblock In Tuesday Debt-Limit Vote

The U.S. House of Representatives on Tuesday was scheduled to debate and vote on legislation to fund the federal government through Dec. 3 and raise the nation's borrowing limit, according to the House Appropriations Committee.

 

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer set the stage for a showdown with Republicans on Monday when they said they would combine spending and debt measures in one bill, despite Senate Republican Leader Mitch McConnell's vow to block an increase in the $28.4 trillion debt ceiling.

 

Democrats have the votes to pass the measure in the House, but cannot get it through the Senate without Republican support. (Reuters – Continue Reading)

EU Calls For ‘Pause And Reset’ In Transatlantic Relationship

A top EU official today urged Europe and the United States to "pause and reset" their "broken" relationship, adding fuel to an ongoing dispute between France and Washington over a new security deal between the U.S., U.K. and Australia.

 

The EU's Internal Market Commissioner Thierry Breton — an appointee of the French government under President Emmanuel Macron — made the comment during a visit to Washington where he met with U.S. counterparts to discuss coronavirus policies, technology and cybersecurity issues.

 

"I planned this visit to the U.S. weeks ago with a positive agenda, to deepen EU-U.S. cooperation [but] something has changed," Breton is expected to say at a virtual event, according to prepared notes shared with reporters. "There is a growing feeling in Europe – and I say this with regret – that something is broken in our transatlantic relations." (POLITICO – Continue Reading)

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