The string of positive economic indicators for the U.S. economy continued last week with a strong October employment report. The economy added 250,000 jobs for the month, 50,000 more than expected. The unemployment rate remained at 3.7% while average hourly earnings grew at an annualized pace of 3.1%. Other economic indicators continue to support 3% GDP growth.
This week’s news will be dominated with the outcome of the midterm elections and its potential implications for fiscal policy going forward. On Thursday, the Federal Reserve (Fed) concludes its November meeting. While it is widely expected that the Fed will keep interest rates unchanged at this meeting, they will likely set the stage for another 25 basis point increase in December. Given the recent market volatility and the uncertainty from the election results, the potential for continued heightened volatility remains significant no matter the outcome.
Headlines and rhetoric will remain heated in this polarized environment. Given recent equities challenges, with potential higher interest rates, this week will provide some key news for how the remainder of the year will likely play out.
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