The Federal Reserve concludes its meeting today – and in the real world not much has changed. Data continues to show a US economy that is performing OK, and a US consumer that is indifferent to the hothouse environment of financial markets.
The Fed is not going to want to make volatility – it is not (normally) a vindictive institution. A likely solution would be to signal awareness of the risks of market volatility, but emphasis the lack of real world justification.
There is confidence data from France and Germany today. Confidence data is a weak economic indicator, but that does not stop markets paying attention to it. There is a question as to whether political risk rather than economic matters may influence current data.
Australian consumer price inflation for the fourth quarter came in at 2% yoy, in line with expectations. That, of itself, is a little unexpected as global inflation has tended to surprise on the upside over the past few weeks.