Corporate Tax Lowering Postponed?
The greenback has mildly loosened while Pound and Japanese Yen remained strong. Republican Kevin Brady (House Ways and Means Committee Chairman) stated that tax bill execution will be next week. At the end of this week, Senate Republicans will present their version of the bill. It’s projected to differ from the President’s one and Senate Republicans might postpone corporate tax lowering by a year. Some say, both proposals will be accepted.
Yesterday, New Fed Governor Randal Quarles delivered his first speech. Quarles said there should be a new view on the economy and that policy moves should be more clear. Janet Yellen was honored with former Fed chair Ben Bernanke with the Paul H. Douglas Award for Ethics. Stephen Poloz (BoC Governor) promised to control economic developments and to mull the idea of further rate hikes. The Governor also appreciated wage growth. Benoit Coeure (ECB Executive Board member), Jens Weidmann (Bundesbank Head) and Francois Villeroy de Galhau (Bank of France Governor) called for ending the ECB’s asset purchase program even if inflation doesn't improve.
China trade surplus rose to 254 billion yuan (38.2 billion dollars) last month. Today, Canada will release housing starts and building permits.