The Federal Reserve convenes a two-day monetary policy meeting today that is expected to result in a second consecutive quarter point cut to interest rates. The attack on the Saudi Arabia’s oil infrastructure the weekend adds to the long list of geopolitical uncertainties the US central bank must consider before reaching a decision. (FT)
The U.S. has inked initial trade agreements with Japan on tariff barriers and digital trade that won't require congressional approval. Not so many other details were provided, including whether President Trump had agreed to rule out imposing tariffs on Japanese automobiles. Coming to terms with Japan is seen as especially important because the President withdrew from the Trans-Pacific Partnership on his fourth day in office. (SA)
Saudi Aramco could take months to fully restore output at its giant Abqaiq plant with oil analysts saying that damage at the facility is more severe than originally thought. Crude futures are holding close to yesterday’s level as investors await a clearer picture of supply disruption and worry about future attacks in the region. One thing seems almost certain: the market seems to have underappreciated the geopolitical risk premium that should be reflected in crude prices. (Bloomberg)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.