The U.S. government may be shut down. But the Federal Reserve isn’t.
On Wednesday, the Fed will be publishing the minutes of its September Federal Open Market Committee meeting.
But ahead of that, two Fed presidents will be making comments today about the economy and monetary policy that could move markets.
Here’s a quick preview from Morgan Stanley’s Hans Redekar:
Fed talk ahead of the minutes. The Fed’s Plosser and Pianalto will be speaking today. While both are non-voters, their assessment of the policy outlook is likely to be of interest to the markets, especially ahead of the FOMC minutes, which are due for release tomorrow. The market will be sensitive to any assessment regarding the impact of the current shutdown on the policy path and whether tapering of QE could be delayed further by a prolonged government shutdown. Plosser has been on the hawkish side of the argument, calling for tapering to start early. Hence, it will be interest to see if Plosser maintains this stance in light of recent events. As for the FOMC minutes tomorrow, the market will be weighing up how close the call was to delay tapering while also assessing whether the delay is a function of the recent weaker data and the fiscal deadlock, or a structural shift to a more dovish stance, perhaps representing a transition towards a Yellen-led Fed.
Cleveland Fed President Sandra Pianalto will be speaking on monetary policy in Pittsburgh at 12:25 p.m. ET and Philly Fed President Charles Plosser will be speaking on the economy at 12:30 p.m. ET.