After claims by both democrats and republicans that Trump's "skinny" budget proposal is dead on arrival, Trump's nemesis, John McCain chimed in and said that in its current form the Trump budget simply won't pass the Senate. “It is clear that this budget proposed today cannot pass the Senate," the Armed Services Committee chairman said in a statement.
First Goldman, then RBC, and now JPM's top quant.
One month after JPM's head quant Marko Kolanovic warned that volatility is about to return and could lead to "accidents", the market timer also called "Gandalf" elsewhere for his prognosticative skills is out with a fresh warning, predicting "market weakness in the near-term" adding that he is cautious and urging clients to hedge equities.
One of Janet Yellen's stated reasons behind the Fed's rate hike has been to reward savers with a slightly higher rate of interest on their deposits: after all, for nearly a decade the interest collected by depositors across US banks, with a few exceptions, has been 0.0% or thereabout.
As expected, the White House has released topline spending totals for government agencies in FY2018, endorsing a $30bn nominal cut in congressional appropriations. However, as Goldman Sachs details, the release includes no projections of the overall fiscal path or economic assumptions, and includes no discussion of tax reform or infrastructure proposals. Those details are expected to be released in May.
MAIN POINTS:
First, it was Goldman's chief economist Jan Hatzius, who in a fascinating note explained why the market has totally misread the Fed's tightening intentions, claiming the market surge is "not the reaction the Fed wanted", alleging that the market's dramatic "easing" response was "not the outcome the FOMC aimed for" and concluding that "at the margin, it will likely make them more inclined to tighten policy", a polite way of saying that the Fed may now not be behind the inflationary curve, but that it is certainly behind when it comes to "explaining" to the market that it has run ahead of its