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Here Are The Major Economic Events To Watch This Week
Sam Ro / Business Insider / September 15, 2013
Former Treasury Secretary Larry Summers has pulled himself out of the running for Chairman of the Federal Reserve.
While this is likely to dominate headlines Monday, there are some big economic events to watch this week.
Here’s your Monday Scouting Report:
- Stand By For The Fed: When the Federal Reserve concludes its two-day Federal Open Market Committee (FOMC) meeting on Wednesday, economists expect to hear that the Fed is tapering its monthly purchases of $85 billion worth of Treasury and mortgage-backed bonds. This is something that Fed Chairman Ben Bernanke and his peers have been talking about since May.Economists have long been expecting the taper to be as big as $15 billion when initially announced. But with economic data deteriorating in recent weeks, those economists have shifted their expectations to “taper-lite,” a total reduction of $10 billion.
Bank of America Merrill Lynch’s Michael Hanson actually thinks we won’t hear about a taper until December. “While we expect the Fed to taper at one of the next three FOMC meetings, we see good reasons to be patient: recent data have, on balance, underperformed; the Fed needs to reduce its over-optimistic forecasts; and downside risks have re-emerged,” wrote Hanson on Friday.
- Empire State Manufacturing Survey (Monday): Economists estimate that the New York Fed’s business index climbed to 9.0 in September from 8.24 a month ago. “We expect continued modest expansion in the manufacturing sector and look for the Empire manufacturing index to come in basically unchanged at 8.00 in September,” said Bank of America Merrill Lynch’s economics team. “Our forecast is consistent with the August new orders index, which suggested that manufacturing in the NY Fed district would grow at the same pace as in August.”
- Industrial Production (Monday): Economists estimate that production increased by 0.5% in August. “With purchasing managers’ indexes having generally improved in August and employment data showing that aggregate hours worked in the manufacturing sector rose 0.3 percent last month, we expect industrial production to post a modest gain of 0.6 percent for August,” said Wells Fargo’s John Silvia.