UNITED STATES   There were no surprises from the Fed meeting; all as expected: No rate change, and the announcement that balance sheet tapering will begin in October, following the procedures laid out over the spring and summer of 2014, and detailed last June. All the same, it was a critical meeting. First because it was the last one for Stanley Fischer. With his departure, plus, cumulatively, those of other four Board members, the weight of his lingering influence will be critical as a new Board may seek to change the course of policy. Fischer’s guidance was critical, as had been Bernanke’s, in shaping the approach of the Yellen Fed. Second, because, in the Q&A, Yellen made two important clarifications: That the committee in general understands that low inflation in 2017 is not structural but idiosyncratic; thus, that it does not stand in the way of continued rate hikes. That the decision to begin tapering arises from a belief in solid foundations for economic growth. The economic recovery is well-founded. Thus, the process of balance sheet adjustment is not to be countered except for major, unexpected economic disturbances. In fact, Yellen hinted that she thought the Fed would first cut again … Continue reading US + Brazil Financial News (9/25)