As widely expected, the Fed announced that it will begin in October to reduce the quantity of Treasury and mortgage securities on its balance sheet.
Of much greater interest to investors, the outlook for the pace of future rate hikes was a little faster than expected. Roughly 75% of Fed officials forecast one more rate hike this year and three rate hikes in 2018. August existing home sales decreased 2% from July to an annual rate of 5.35M, below the consensus of 5.45M, and the lowest level since August 2016. Existing home sales were 0.2% higher than a year ago. Total inventory of existing homes available for sale fell 2% to a 4.2-month supply, and it was 7% lower than a year ago. The median existing-home price was 6% higher than a year ago.