Markets & Economy

Temporary resolution of debt ceiling crisis has paved the way for a bipartisan budget

Now that Tea Party has shot its wad, president and mainstream Republicans can get down to business

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Merry Christmas! We will be free of renewed budget crisis until January. Party, party, party. A few inconveniences remain from this last shutdown round, and a few small piles of smoking wreckage, but also a lot of good news. We will finally get September employment data next week, then on Nov. 1 the October numbers. Will these all-important reports be distorted by the shutdown? Sure. How? No idea. There is a chance that this data-blind period will muddle some significant change in the economy, but it's more likely to be on the slow side as a shutdown effect. Then again, the shutdown might have concealed or briefly delayed an acceleration. Thus the credit markets will be nervous and volatile for months. The Fed will cobble together its own internal view, but post-shutdown interest rates are sliding slightly in expectation that the Fed will continue QE untapered, at least until it has decent economic data. During regime change from Bernanke to Yellen the Fed is not likely ...