Daily Market Update 9/16/13

Rates inched lower Monday following the withdrawal of Lawrence Summers as a leading candidate to replace Ben Bernanke as Fed Chairman next year.  Summers would have faced confirmation difficulty among Senate Democrats who object to his ties to the banking industry.  His withdrawal leaves Janet Yellen, the current Fed Vice-Chair, as the clear favorite to replace Bernanke.  Yellen is seen as the more “dovish” of the two regarding inflation, and is more likely to maintain the Fed’s loose monetary policy.  Today’s economic data was over-shadowed by the news, and had little impact on rates.  August Industrial Production rose 0.4%, a bit below expectations.  The Empire State index, a survey of manufacturers in the region, came in at 6.3, well below forecast.  Readings above zero indicate expansion in the manufacturing sector.  Stocks moved higher.  No other key data will be released today.

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