Fed Chairman Powell released a change in monetary policy strategy last week.

The economic data released last week continued the pattern of the last three months. That pattern is a rebound in activity much better than forecasts have expected. The better than expected data included durable goods orders, personal income and spending and strong housing data. The one piece of data of concern was the decline in Consumer Confidence. The Conference Board’s index dropped from 91.7 in July to 84.8 in August. This was a period when the spread of the virus increased and has slowed the re-opening of the economy. The index is at its lowest level since May 2014. There is a strong correlation (58%) between confidence and consumer final demand.