September 2018 Economic Recap
The U.S. and Canada struck on trade, creating the USMCA, which will need to be ratified by Congress next year. The deal includes a 16-year sunset clause, exchange-rate curbs which would prohibit countries from artificially weakening their currency, the ability to implement tariff reviews on other countries, and tariff relief for Canada and Mexico. It also changes some of the rules for the auto industry, requiring a greater amount of the input labor to be relatively high wage in order to qualify for duty free sale.
The Federal Reserve hiked short-term interest rates to a range of between 2%-2.25% at their September meeting. An updated Summary of Economic Projections signaled that the vast majority of FOMC participants anticipate another rate hike in December. Fed funds futures are implying a 75% chance of this occurring.
For a deeper consideration of the economic data released during September, please follow the links below: