US debt ceiling deal will likely be reached… but then what?! | MarketTalk: What’s up today? | Swissquote

Show notes

Most European markets were closed yesterday due to bank holiday, but debt ceiling discussions in the US continued at their full speed, and led to some further optimism about a potential deal that could be reached by next week.
While an agreement on debt ceiling is highly likely, what concessions will be made on spending is more important moving forward.
Elsewhere, US retail giants announced earnings to help investors get a better sense on where the US consumer spending winds are blowing. The latest GDP data had revealed a surprisingly resilient consumer spending – which makes up around two thirds of the US economic growth, and retailer results somehow challenged that strength this week.
All in all, the latest numbers hint that consumer spending could be weakening, and US jobless claims are moving up. But the latest figures don’t change the way the Federal Reserve (Fed) sees the future of its policy. An army of Fed officials talked this week and none said that the Fed should cut the interest rates.
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