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Overview: Mon, October 03

Daily Agenda

Time Indicator/Event Comment
09:05Bostic (FOMC non-voter)Gives opening remarks at technology conference
10:00ISM manufacturing PMISmall decline expected in September
10:00Construction spendingAugust spending should be pulled down by the single-family sector
11:303- and 6-month bill auction$54 billion and $42 billion offerings
15:10Williams (FOMC voter)Speaks at Hispanic Chamber of Commerce annual conference
Dom & imp. auto salesMild improvement likely in September

US Economy

Federal Reserve and the Overnight Market

This Week's MMO

  • MMO for September 26, 2022

     

    As expected, Chair Powell’s press conference last week’s focused on the overheated labor market.  Some second-tier labor market indicators, like job vacancies and the quits rate, got primetime billing.  Next Wednesday’s JOLTS report may overshadow the monthly employment report due two days later.  In the meantime, we’ll be tracking private-sector indicators that provide early color on various JOLTS-style labor market concepts. 

    Also, this week’s MMO looks at the surprising rise in discount window activity since the spring.  The level of primary credit borrowing is still too low to be meaningful from a near-term perspective, and we’re skeptical that volume will grow enough to have an impact on front-end liquidity dynamics anytime soon.  However, the fact remains that we don’t have an adequate explanation for the growth in volume thus far, and we cannot rule out the possibility that more banks will overcome their discount window aversion in the months ahead.

MMO Analysis