Another wild week is in the books. Tax talk dominated the second half of the week as the stock markets, in general, felt a bit weary. We also endured debt ceiling discussions, Fed officials and trading controversies, and confusion within the FDA as to how to proceed with booster shots. It’s a wonder the markets weren’t bumpier!! Next week the Federal Reserve will be meeting for two days (Tuesday and Wednesday) concluding with a press conference from Chairman Powell on Wednesday afternoon. It is widely anticipated that tapering plans (the reduction in bond purchases on the open market) will be discussed yet again and perhaps even details will be given on timetables of when these actions might begin to occur. These are important moves to consider and will certainly move the economic needle to some degree. However, given the recent tax discussions and chatter, coupled with impending debt ceiling challenges, the focus has shifted for now.
As quickly as it seemed to come and then fade only a few short months ago, the tax debate is front and center once again. These discussions are stemming from two things: the recent budget announcements and the unfinalized infrastructure bills. The current administration is willing and prepared to take both battles on at the same time. A lot of money is on the table to be spent and paying for these items will be costly. While the House may be able to expediate certain measures through their process, there is no question that once these items stop at the Senate floor, another long and lengthy discourse will be at hand. The Democrats control a razor thin margin in the Senate and will need the full support of their party. Perhaps another round of reconciliation efforts by the controlling party will be the key in these discussions. Recall that budget reconciliation is a special parliamentary procedure of the United States Congress. This procedure is set up to expedite the passage of certain budgetary legislation in the United States Senate. There will be much deliberation and horse “trading” in the coming weeks and months, that is a certainty. The war of words has already begun with the media positioned to soak it all in. So much for the “cooler” weather we had all been hoping for. It now appears that warmer temperatures may be around for a while longer.
Don’t forget to come by and see us on Saturday, October 2nd from 9am – 12pm for our annual Shred-It event. We will once again be positioned in our lower parking lot. Snacks and camaraderie will be served!
Your local Towson Financial Advisors