November - Lame Duck Session Of FOMC? - Economic Preview

(RTTNews) - Although markets have been reacting to Fed rate hike expectations with the release of each economic evidence, chances are high that the FOMC stands pat in the November meeting for reasons more than one.

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2016 being the election year and the 2-day November meeting coming in ahead of the November 8 elections, the central bank might prefer the change of guard at the helm to be complete. Some even suggest any drastic move immediately after the elections is unlikely, as the central bank drafts policy moves with the medium term in mind and therefore would prefer the dust to settle down on the elections before any policy maneuver.

Another reason could be the lack of the Chair's press briefing in November, which is used as a platform to substantiate the Fed's rationale for a particular policy action.

Review of Week Ended October 27

Economic data released during the just concluded week may have been far from convincing concerning a sustained, steady and strong recovery. Preliminary goods trade data showing a narrower deficit for September and an increase in core capital goods shipments bode well for the third quarter GDP data. However, the durable goods orders report did reveal weakness going forward, given weak core capital good orders.

Private sector activity readings from Markit were buoyant and jobless claims unexpectedly fell. The housing market readings of the week, namely new home sales and pending home sales, were strong. That said, consumer confidence data was found wanting.

After the mixed week, investors brace for another week of hectic activity on Main Street. Here is the cheat sheet of the unfolding week's key economic data…