In This Issue:
Fed Throws Surprise Party for Markets
· The FOMC surprised markets by continuing the current monthly pace of asset purchases at $85 billion. The bond market rallied, while equity indexes reached fresh highs.
· Industrial production came in a tad weaker than expected, but data on manufacturing production pointed toward further firming in the factory sector.
· Housing data this week indicated that the housing recovery continues at a moderate pace. Starts rose less than expected, but the disappointing turnout stemmed from weakness in multifamily. Existing sales increased 1.7 percent and are now at their highest mark since early 2007.