22 September, 2016

After a few days of listless trading, the big day arrived on Wednesday. True to form (and not entirely unexpected), the Fed ducked yet again, deciding to keep short-term interest rates unchanged, although it did say that it expected to raise rates before year-end. In addition, there were sharper differences of opinion this time around, with three Fed governors dissenting in what was seen as a growing challenge to Ms. Yellen’s dovish leadership. Explaining her decision at a subsequent news conference, Yellen said that “We found the economy has a bit more running room...[but] we don’t want the economy to overheat, and if things continue on the current course, I think some gradual increase will be appropriate”