Detailed policy (from some)
- US Federal Reserve tightening is on the agenda again. This week several Fed presidents have suggested that the Fed's balance sheet should be considered. Quantitative policy tightening could be just as significant for the economy as monetary policy tightening. A more detailed policy debate seems to be underway within the Fed.
- US Fed Chair Yellen implicitly criticized the incoming administration by voicing her support for financial regulation (which Trump has said he would repeal). Yellen was optimistic on the near-term economic outlook, consistent with policy tightening (be that monetary or quantitative).
- UK Prime Minister May is to give a speech next Tuesday, offering details on the UK's departure from the EU. Currently, the government's public stance amounts to little more than the soundbite "Brexit means Brexit". This will be enlarged upon, perhaps offering something as radical as "Brexit really means Brexit".
- Today's data is mainly American. Producer prices indicate corporate pricing power at a time of rising labor costs (companies mainly sell to other companies). The Michigan opinion poll of consumer confidence is likely to be little more than noise, given the political climate and the media sensationalism of news (fake or otherwise).