Political crisis and policy reform concerns top of mind this week
WEEKLY MARKET COMMENTARY |
The week ahead in financial markets will likely be driven by a combination of the growing sense of political crisis in Washington D.C.—which is rapidly diminishing hopes that substantial policy reform can be accomplished in 2107—and the Federal Reserve’s (Fed) Jackson Hole symposium on monetary policy featuring Fed Chair Janet Yellen’s talk on financial stability. It is important to note that there are only 12 legislative days left before the debt ceiling deadline expires on Sunday, Oct. 1. In those 12 days the Trump administration and Congress must pass a fiscal year 2018 budget, reauthorize the Children’s Health Insurance Program and then lift the debt ceiling. Once that is complete, then the Congress and the administration can turn to tax reform or tax cuts.
In the international economy, Canadian retail sales will be released on Tuesday, Aug. 22, the Euro Flash Purchase Manager’s Index will be published starting on Wednesday, Aug. 23 and the United Kingdom’s Q2 2017 gross domestic product (second estimate) will be put to market on Thursday, Aug. 24.