Due to exports, the trade balanced managed to reduce by 0.8% and the American GDP grew by 2.5% from the last quarter’s report of 1.7% improvement. The most important fields of the U.S. economy, the labor market and the housing market, are showing a recovery, making the FOMC’s decision on September more evident. The unemployment claims (331k) are still on a descending trend, even if not far from the last release. Today the U.S. dollar appreciated against euro, as the economy proved to remain on track.
Also today, Federal Reserve Bank of Richmond President Jeffrey Lacker emphasized the idea that central banks from all over the world will be defined by their power as lenders. Although lending should be wisely spread over the sectors of the economy, central banks should also be careful not to use this tool incorrectly (currently, in order to maintained the financial stability, central banks are entitle to use all tools they have in their portfolio). As it concerns the future presidency of Fed, Janet Yellen seems to remain the favorite candidate to replace Ben Bernanke in January, after winning the backing of U.S. labor leaders. She is known as a supporter of the current QE program. Chances are that the monetary stimulus will stay in place, or at least will be an available alternative, until the labor market will recover completely.