![\"Weekly](\"http:\/\/www.clarksvilleonline.com\/wp-content\/uploads\/2010\/08\/weekly-market-snapshot.jpg\" "\\"Weekly")
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Market Commentary by Scott J. Brown, Ph.D., Chief Economist<\/span><\/em><\/strong><\/p>\n The Fed will rely on its forward guidance that short-term interest rates will continue to remain exceptionally low “to help maintain a high degree of monetary accommodation for an extended period after asset purchases end, even as the economic recovery strengthens and unemployment declines toward more normal levels.”<\/em>Bernanke repeated that if the incoming economic data were to be broadly consistent with the Fed\u2019s outlook, “we anticipate that it would be appropriate to begin to moderate the monthly pace of purchases later this year,”<\/em> and if the subsequent data continued to confirm this pattern of ongoing economic improvement and normalizing inflation, “we expected to continue to reduce the pace of purchases in measured steps through the first half of next year, ending them around midyear.”<\/em><\/p>\n The economic data were mixed. The Beige Book note that “overall economic activity continued to increase at a modest to moderate pace”<\/em> \u2013 the same phrase that was used in the two previous assessments. Retail sales rose 0.4% in June, but were flat ex-autos and up 0.1% excluding autos, building materials, and gasoline.<\/p>\n Industrial production rose 0.3%, with factory output up 0.3% (+1.8% y\/y, but a -0.2% annual rate in 2Q12). The Consumer Price Index rose 0.3% in July (+1.8% y\/y), boosted by a seasonal adjustment quirk in gasoline. For ex-food & energy, the CPI rose 0.2% (+0.161% before rounding, +1.6% y\/y). Housing starts and building permits plunged, reflecting volatility in the multi-family sector, but single-family permits, the key figure in the report, rose 0.6%.<\/p>\n Next week, the economic calendar thins out. But don\u2019t worry, the following week will more than make up for that. Higher mortgage rates may have had a minor impact on June home sales. Existing home sales measure closings and are more likely to reflect the previous month\u2019s activity. New home sales measure initial transactions (deposit or signed contract), but the month changes are erratic and subject to large revisions. Aircraft orders should lead the durable goods figure.<\/p>\n![\"Scott](\"http:\/\/www.clarksvilleonline.com\/wp-content\/uploads\/2010\/05\/scottjbrown-159x200.jpg\" "\\"Scott")
In his monetary policy testimony to Congress, Fed Chairman Bernanke said that “a highly accommodative monetary policy will remain appropriate for the foreseeable future.”<\/em> He indicated that the Fed is using asset purchases “primarily to increase the near-term momentum of the economy, with the specific goal of achieving a substantial improvement in the outlook for the labor market.”<\/em><\/p>\nIndices<\/h3>\n
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<\/a>Material prepared by Raymond James for use by its financial advisors.<\/p>\n