From a markets perspective, last week was highlighted by the testimony of Fed Chair Powell before the Senate Banking Committee and the House Financial Services Committee.  While there were no surprises that impacted markets the chair squarely faced the issue of rate increases leading to a recession.  Under questioning from the Senators and Representatives he conceded that a recession was “certainly possible” due to the unknown of Covid 19 and the war in Ukraine.

This coming week official Washington is heading out of town for July 4, but the next date on the DC economic calendar is July 6, when the minutes from the June FOMC meeting will be released. I will be watching for any clues as to how dovish the two new Biden Governors may be as the Fed looks at data prior to the July FOMC meeting. The third Biden Governor, Michael Barr, should be on the Board by the next meeting of the FOMC.

Obviously, the headlines on the political front came from the Supreme Court and their decision to overturn Roe vs Wade.  While markets may be agnostic on the issue of abortion, for the political world the SCOTUS decision put the issue front and center as to whether or not abortion will change the political landscape and impact the 2022 midterm elections. With President Bidenâ...

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