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Fed and fiscal policy

| Posted by: Paul Donovan | Tags: Paul Donovan

  • In the US there is heightened speculation about the name of the next Federal Reserve Chair. A shortlist has apparently been prepared for US President Trump (this reduces the risk of a "gut instinct" appointment). Fed Chair Yellen speaks today, but last week's speech comprehensively dealt with policy thoughts.
  • US President Trump has declared that Puerto Rico's debt would have to be wiped out. What is meant by that is not clear (the statement was delivered in an interview with "Fox News", and so lacked the detail of the Trump Twitter Feed). The House of Representatives is likely to vote on a budget resolution on Thursday.
  • There are a whole series of service sector PMI figures cluttering up the economic data calendar today. Please do not make economists talk about this like it means something.
  • UK Prime Minister May is to address the Conservative Party conference. The Conservative Party does not, perhaps, represent the middle ground on the UK-EU / EU-UK divorce proceedings, and the tone of the speech may reflect that. The BRC shop price inflation measure showed a slightly lower level of deflation than last month.