What Mattered This Week? Fed Minutes, Consumer Sentiment
2023.11.27 03:49
Here’s a quick update for this holiday-shortened week! From my perspective, two things mattered this week:
- The release of the FOMC meeting minutes
- The latest consumer sentiment reading
Fed Suggests Rate Hikes May Have Worked
This week, we got the chance to see the meeting minutes from the Federal Open Market Committee’s last meeting, which took place October 31–November 1. In an encouraging sign for markets, the Fed appears to believe that it may have done enough in terms of raising interest rates to combat inflation. The yield on the continued to edge down on renewed hopes that rate cuts could happen sooner rather than later.
Sentiment Indicates Consumers Ready to Spend
The other thing worth noting this week is an uptick in consumer sentiment. With the holiday season at hand, we’ve seen the usual worries about whether consumers will keep showing up. The University of Michigan survey showed a bump in the headline number and a bigger bump in how people feel today. These are both good signs for holiday shopping.
Overall, we have a lot to be thankful for this week, which is certainly timely. With the Fed feeling better about inflation, and consumers feeling a bit better about everything, the economy and markets should keep chugging along into the end of the year.
