After Congress approved a last-minute bill to temporarily avert a government shutdown, the main question now is whether there will be a deal to prevent another crisis in November.
Republican House of Representatives Speaker Kevin McCarthy was able to get bipartisan support on Saturday to a stopgap measure that funds the government through Nov. 17. The bill authorizes an additional budget for disaster relief but doesn’t include aid to Ukraine, a priority for Democrats.
AFP
“We cannot under any circumstances allow American support for Ukraine to be interrupted,” President Joe Biden told reporters Sunday. “The brinkmanship has to end. And there shouldn’t be another … crisis.”
McCarthy will also faces a rebellion within his own camp. Rep. Matt Gaetz (R-Fla.) said he plans to file a motion this week to remove the speaker from his post.
“I think we need to move on with new leadership that will be trustworthy.” Gaetz said in an interview with CNN on Sunday.
Fed Speakers
Several Federal Reserve officials are scheduled to speak at public events this week, starting Monday with Fed Chair Jerome Powell, who participates in a roundtable with workers and small business owners in York, Pa.
At least eight more speeches by Fed officials are scheduled for the rest of the week. Investors will be watching for any signals on the outlook for interest rates after recent indicators showed a slowdown in inflation.
AFP
The core Personal Consumption Expenditure (PCE) index, which is Fed’s preferred inflation measure, rose 3.9% in the 12 months through August, from 4.3% in July, the Commerce Department said Friday. The Fed targets annual inflation of 2%.
Jobs Data
The most watched economic data this week will be the labor report for the month of September, to be released on Oct. 6. The U.S. unemployment rate rose to 3.8% in August from 3.5% in July, while the number of new nonfarm jobs rose to 187,000 from 157,000. Economists surveyed by Reuters estimate an increase of 163,000 in payrolls last month.
OPEC+ Meeting
AFP
The Organization of the Petroleum Exporting Countries holds a meeting on Wednesday, which will include representatives from Russia and other allies. The current oil output targets are unlikely to be changed, Reuters reported, citing people familiar with the discussions.
Oil prices have been above $90 per dollar after Saudi Arabia and Russia decided to cut their production.
UAW Strike
The United Auto Workers strike continues without any agreement with the big three automakers — Ford, General Motors and Stellantis. On Friday, 7,000 additional workers of two plants owned by Ford and GM joined the walkout, bringing the total of striking workers to about 25,000.
UAW President Shawn Fain said he’s optimistic about progress in the talks.
“To be clear, negotiations haven’t broken down. We’re still talking with the three companies,” he said in a livestream Friday, “And I am still hopeful that we can reach a deal.”
AFP
