With no FOMC rate-setting meeting in August, the long-anticipated next session is next week (September 20/21). On Wednesday afternoon Chair Powell will hold his regular post-meeting press conference where he will give his view of the rate decision and look forward.

As Chair Powell has been pretty good at telegraphing policy, there is a widely expected move at next week’s meeting to increase rates by 75 bps. I expect the Chair’s remarks after the meeting to reflect what he has said in recent weeks at both Jackson Hole and the Cato Institute, that the Fed is going to keep raising rates until there is movement towards the inflation goal of 2%. Obviously, the 8.3% August CPI was unacceptable and keeps the central bank on its current policy course.

I expect Chair Powell to also make the point that the Fed will be data-driven and, with the next meeting of the FOMC not until November 1 and 2, there will obviously be a good amount of data for the Fed to look at prior to then.

Government Funding Deadline

Another week passed and Congress still does not have a roadmap on how to pass a Continuing Resolution (CR) to prevent a government shutdown on October 1. With only two weeks to go, everyone in DC says that there will be no shutdown; but a strategy to pass a CR remains elu...

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