Weighing the Week Ahead: A De Facto Expansion of the Fed’s Mandate?

The economic calendar is normal, highlighting housing data, leading indicators, and the FOMC decision. The pundit conversation remains all about the Fed, but a new angle is getting more attention. The talking heads will not raise the question explicitly – sticking to personal ideas of what the Fed should be doing. The implication?

Are we witnessing a de facto expansion of the Fed’s dual mandate?

Last Week Recap

In last week’s installment of WTWA, I guessed that, despite the economic data, the punditry would be focused Fed policy and how it might affect stock prices. That was indeed the headline for both news articles and TV segments. The speculation continued all week, and will no doubt continue this week as well.

The Story in One Chart

I always start my personal review of the week by looking at a great chart. This week I am featuring Investing.com’s version. If you click through to the site, you will be able to customize the view in many ways. Also, each of the “N” symbols has an associated news event.

The chart looks choppy, but the range on the week was only 1.25%. The overall gain was 0.47%. Despite the news, it was a quiet week. Our weekly Indicator Snapshot provides a handy history of both actual and implied volatility.

Personal Note

Mrs. OldProf and I are enjoying a rare road trip. Since I ignored her today while writing this, she suggests (strong!!) that I take next week off. And I probably will.

At the moment we are in Kentucky. This morning I saw our housekeeper in the hallway and told her that our room did not have any tissues. She looked at me quizzically and explained that she did not speak English. I found a crumpled example in my pocket. She said, “Oh! Kleenex.” She produced a hotel brand box. Some words are universal.