Every Friday, Brian Jacobsen provides perspective on key events and topics of the current week and his thoughts about what the week ahead may hold. Here’s his report for the week of August 21–27, 2021.

The week that was

  • Explosions in Kabul, Afghanistan, killed 12 members of the U.S. military and 60 Afghans as the U.S. continued to try to evacuate people from the country. President Biden said the U.S. will continue evacuations, but the U.S. will also retaliate.
  • The U.S. Food and Drug Administration gave full approval for the Pfizer/BioNTech vaccine for individuals 16 and older. Up to this point, it was being used under an emergency-use authorization.

 

Economics:

  • Korea’s central bank hiked rates 0.25 percentage points, becoming the first developed market central bank to hike rates since the pandemic began.
  • Federal Reserve (Fed) Chair Powell spoke at the Jackson Hole Economic Symposium. He said that progress has been made on jobs since the July Federal Open Market Committee meeting, but the delta variant has spread and that is a concern. He also said that the Fed cannot take it for granted that the inflationary impulse the economy has experienced is only transitory. As far as the outlook for policy, he said it could be appropriate to begin tapering this year, but tapering doesn’t mean rate hikes are right around the corner.

 

Politics:

  • The House of Representatives passed a budget blueprint and set a non-binding commitment to vote on a bipartisan infrastructure package by September 27.
  • The Supreme Court overturned the Centers for Disease Control and Prevention’s (CDC’s) latest eviction moratorium, saying that the CDC exceeded its authority and that “if a federally imposed eviction moratorium is to continue, Congress must specifically authorize it.”

 

The week to come

  • On Monday, we get U.S. pending-home sales for July and August and survey results from China’s purchasing managers about the health of China’s economic expansion.
  • On Thursday, the Institute for Supply Management releases its member survey results to get a read on the strength of the U.S. economy.
  • Friday is the big day as it’s the Friday before Labor Day and the employment situation report for August will be released.

 

 

Thanks for reading, stay informed!

 

 

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