As you can see, what the Fed says about the economy and inflation can have a big impact on rates and the financial markets.
This coming week may be another exciting and potentially volatile one as the Fed will see one of the more important economic reports of the month – Friday’s first read on 2018 third quarter Gross Domestic Product (GDP). The second quarter saw a sharp 4.2% rise as the U.S. economy continues to strengthen with the labor market near full employment. Expectations are for a slightly slower growth rate, near 3.2% – but still quite strong.
GDP is the value of the goods and services produced in the United States. The growth rate of GDP is the most popular indicator of the nation’s overall economic health.
Housing data will also be reported as the sector cools a bit and inventories rise from anemic levels seen in the past few years.
Key Economic Reports This Week
• The economic calendar begins on Wednesday with New Home Sales, followed by Pending Home Sales on Thursday.
• Durable Orders will be released on Thursday along with Weekly Initial Jobless Claims.
• The big report this week will be Friday’s first reading of third quarter Gross Domestic Product.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday Oct 19, 2018)