How Long Will "Considerable Time" Be?

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The market took solace in the fact that the “considerable time” phrase was left in the Fed’s policy statement. Not so fast though. This phrase cost Janet Yellen nothing because despite maintaining that interest rates will remain low for a considerable time, Fed Chair Yellen reiterated that rate decisions will be based on economic data. The economic data has been getting better so considerable time might be first quarter. For now the market can just ignore that 800 pound gorilla. Meanwhile, the U.S. economy posted some mixed news this morning. Housing starts fell 14.4 percent to 956,000 last month from 1.12 million in July, which had been the fastest pace since 2007. However, builder confidence rose to the highest level in nine years. On the employment front, the number of initial unemployment claims dropped 36,000 to 280,000 last week. This is the lowest level since mid-July when we reached the best readings since May 2000. Please follow jobless claims and the headline unemployment rate on page 58 of the Global Perspectives book.

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