The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $42.4 billion in November, down $2.2 billion from $44.6 billion in October, revised. No change was expected. November exports were $182.2 billion, $1.6 billion less than October exports. November imports were $224.6 billion, $3.8 billion less than October imports.
However, the focus of the session was on FOMC Meeting Minutes. Federal Reserve’s decision to raise interest rates last month was a “close call” for some policy makers who worried about too-low inflation and received assurances that their colleagues would closely monitor its progress. “Some members emphasized the importance of confirming that inflation would rise as projected and of maintaining the credibility of the committee’s inflation objective,” said minutes of the Federal Open Market Committee’s Dec. 15-16 meeting, released Wednesday in Washington.
The minutes also indicated that some members believed “the risks attending their inflation forecasts remained considerable” even as “the committee was now reasonably confident in its expectation that inflation would rise, over the medium term, to its 2 percent objective.” The minutes showed “almost all” FOMC participants were “now satisfied the committee’s criteria for beginning the policy normalization process” had been met.
Tomorrow's session will bring Building Approvals and Trade Balance data. Analysts forecast 2.8% decrease in Building Approvals, while Trade Balance deficit should decline to $2.98 billion. In the US session, Unemployment Claims figures are scheduled for a release. Analysts are anticipating decrease to 271,000.
Figures to watch:
Building Approvals (Thursday 1:30)
Trade Balance (Thursday 1:30)
Unemployment Claims (Thursday 14:30)
