Daily digest market movers: US Dollar rises on Michigan sentiment data, FOMC decision

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  • The FOMC concluded its two-day meeting with an expected 25 bps rate cut, signaling continued easing amid concerns over global economic growth.
  • Despite weak jobs data, other indicators suggest the US economy remains robust, with solid labor market conditions and growth forecasts above trend.
  • The Atlanta Fed's GDPNow model estimates Q4 GDP growth at 2.4%, while the New York Fed's Nowcast model tracks it at 2.0%.
  • Rising productivity is expected to support low inflationary economic growth, leading to higher real interest rates and currency appreciation in the long term.
  • Consumer confidence improved in November with the University of Michigan's Consumer Sentiment Index rising to 73 from 70.5 in October.
  • The Current Conditions Index declined slightly to 64.4, while the Consumer Expectations Index climbed to 78.5.
  • Inflation expectations remained low, with the one-year outlook edging down to 2.6% and the five-year outlook rising to 3.1%.

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