All Eyes on Yellen Today Ahead of Fed Meeting

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The Fed meets today and investors are anxiously waiting to see if Janet Yellen removes the "considerable time" provision in the language regarding rates. If she does, this in theory would seem to move the rate timetable up. The market is taking comfort in the latest below target inflation report because it seemingly takes some of the heat off the Fed. U.S. consumer prices fell in August for the first time in 16 months, declining 0.2 percent. The bulk of the decline was due to energy prices which declined 2.6 percent, offset partially by another increase in food prices. If investors assume the U.S. is slipping into a low inflation/deflation scenario a la Eurozone it would be a mistake. The U.S. economy is gaining steam. The employment picture, the Fed’s other concern when it comes to raising rates, has been lagging but is also firming up. The latest number of job openings is the highest in 13 years and there are only now 2.1 applicants for each potential position. Investors don’t seem to realize better economics trump Fed language modifications so we could be in for a spike in volatility on the road back to normal. Please follow inflation measures on page 65 of the Global Perspectives book.

Also, if you missed Karyn's Sept. 16th appearance on CNBC's Closing Bell, watch it here.

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