The FOMC released the latest monetary policy summary and federal funds rate decision last night. As expected the FOMC decided to keep rates on hold, whilst hinting at a hike in March. The Fed mentioned in their statement they expect to see inflation rise and stabilise over the course of the year. The slightly hawkish stance saw the US regain some of its losses. This was Janet Yellen’s last meeting as chair of the Federal Reserve, before Jerome Powell takes over on the 3rd February.
The first PMI was released from the UK this morning. The manufacturing PMI posted worse than expected at 55.3, the first slowdown in six months. The slowdown was fuelled by the rising cost for raw materials and the reduction in domestic demand. Despite missing expectations, the figure shows the sector is still expanding and still registered above the long-running average of 51.7.
Across the pond, the US weekly unemployment claims figure posted better than expected at 230k. The prelim unit labour costs figure also posted better than expected at 2%. The ISM manufacturing PMI is set to be released, expected to decline slightly from the previous reading to post 58.7.