Good Monday morning from your Hometown Lender,
Today’s economic calendar is blank.
Not much going on but the data does start to pick up tomorrow with the Jolts and Consumer confidence reports. Wednesday we have the ADP payroll data, Chicago PMI, the Bank of Japan rate decision (Japan is expected to raise rates), and the Fed decision. Wednesday will be a (very) busy day. Thursday brings the Bank of England rate decision along with unemployment reports and ISM Manufacturing. Friday, of course, is the biggest economic data report of the month with the jobs report. I don’t expect anyone to memorize the calendar and there will not be a quiz after class, but it is worth recognizing how impactful each day can be on our pricing. I don’t think there is a rush to lock before the Fed meets but I would stay alert and be ready to lock at 11am Wednesday should the Fed say anything unfriendly.
What to expect from the Fed meeting on Wednesday?
Well, according to Bloomberg, the Fed is widely expected to leave rates unchanged but traders are hoping for a clear hint that a cut may be coming, with investors currently pricing in a first 25-basis-point cut in September. Bond traders who have set themselves up for that gradual easing to start in September are also ramping up some side bets that the Fed may have to be more aggressive than is currently expected, should the US economy deteriorate sharply. That’s amid some surprising results of a year of higher rates.
And if you haven’t heard:
President Biden will unveil plans to overhaul the Supreme Court in remarks Monday at the Lyndon B. Johnson Presidential Library. Biden will propose a constitutional amendment overturning the court’s recent decision giving Donald Trump and other former presidents immunity for crimes they allegedly committed while in office, the official said, and will urge Congress to establish term limits for the justices, who currently serve for life, and impose an enforceable code of conduct in place of the self-policing system the court adopted last year.
Last, the USA has won 14 medals at the Paris Olympics which is tied with the host nation, France for the most medals although, Korea, Japan, and China have more golds. Let’s go USA!
Stay safe, and make today great!
