Wednesday, September 17, 2014

Economic Journal - Wednesday, 9/17/2014

(as of 7:00 AM PST)

It seems very quiet this morning with markets opening near unchanged after yesterday's strong run up.  The consumer price index provided a nice surprise today with the first decline in a long time.  It was aided by the sharp drop in oil prices over the last few weeks.  With inflation well under control the Federal Reserve Bank may have more time before it feels in interest rate hike is required.  The Fed meeting today will be watched closely by investors and will likely move markets one way or the other.  Moving up the time table for interest rate hikes would surely cause a market retreat, but no major shift in policy is expected yet.  Oil and gold are also near unchanged and interest rates are stable.

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