Despite the recent hurricanes, Q3 GDP within the U.S. was strong. Expectations are that the Federal Reserve remains on track to raise rates by 0.25% one more time in 2017. The current rate remains between 1% and 1.25%.
The European Central Bank announced plans to extend their quantitative easing starting in January 2018, although at a reduced rate (€30B down from €60B per month). This extension will last through September 2018, and the terms were left open ended to further extend or increase the pace of purchases, should adverse economic conditions develop. The announcement came as no surprise to markets and is a continuation of easy monetary policy around the globe.
President Trump’s nomination of the next Chairman to the Federal Reserve is expected to be announced in the coming days. Jerome Powell, a current Fed governor, has been identified as a front runner. Mr. Powell is expected to provide continuity to existing monetary policy. Other potential nominees include John Taylor and existing Fed Chairwoman Janet Yellen. Regardless of who is nominated, none of the candidates are expected to make any impromptu changes to monetary policy.