Important points from the meeting of the Federal Reserve Open Market Committee on September 16th and 17th.
The gross domestic product (GDP) appeared to be expanding at a moderate rate during the quarter ending September. Consumer price inflation was below the Committee’s long term objective of 2%. This was as a result of lower energy prices and import costs.
Labor market conditions improved with total non-farm payroll employment expanding at a “solid” rate during July and August. Unemployment, which had been at 5.3% in July declined to 5.1% in August. However, the proportion of workers employed part-time for economic reasons remained high. The number of new private sector jobs increased markedly in July.
Industrial production increased overall in July and August, although manufacturing fell in August largely because of a fall in the number of new motor vehicles produced. Mining and quarrying increased in July and August, after a steep drop in the second quarter.
Personal consumption expenditure was rising at a moderate pace. There was a moderate increase in real disposable income in July. However, consumer sentiment decreased in early September, as reported in the survey by the University of Michigan, partly because of the recent decline in the equity market.
Starts of single family homes increased in the first part of the quarter, although starts in the multifamily sector fell back slightly. New and existing home sales both increased in July.
Imports fell back in July as a result of lower consumer goods imports, but exports were up because of an increase in automobile and non-aircraft capital goods.
Global economic wealth was weak in the second quarter as a result of contractions in GP in Japan, Canada, Brazil, and Taiwan, even though the eurozone and the UK continued to grow at a moderate pace. The outlook for China was subdued.
Those are some of the major points from the meeting of the FOMC. To read the full report, click on this link.