Thursday, September 21, 2017

Today's Headlines

  • Puerto Rico's Economic Crisis Grows in Maria's Wake. Hurricane Maria is Puerto Rico’s worst in nearly a century, a double blow as it follows the destructive Hurricane Irma by just two weeks. The costs, both human and financial, have only begun to come into view. This much is certain: the U.S. territory, bankrupted by runaway debt, now confronts an even deeper economic crisis. Four months after the island’s government sought protection from creditors in the nation’s largest municipal insolvency, the odds of a speedy resolution now appear to be dimming. President Donald Trump said Thursday he plans to visit the island and declared Puerto Rico a disaster zone, which helps clear the way for federal assistance.
  • Take the Fed's Dot Plot Forecast in Stride, Deutsche Bank Says. (video) The bond market needs to take a chill pill when it comes to the dot plot -- the Federal Reserve’s quarterly outlook for policy rates, which was updated Wednesday. That’s what Torsten Slok, chief international economist at Deutsche Bank AG, says given that with Vice Chairman Stanley Fischer attending his final FOMC meeting this week, four of the seven board seats will be empty. “For markets, this might not seem important here and now, but it is pretty clear that dramatic changes are coming to the Fed before the end of the year, which has significant implications” including on the leadership’s outlook for inflation, wrote Slok in a note. “It almost makes you wonder if the dot plot and forecasts the Fed released yesterday have any value for markets.
Wall Street Journal:

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