Publications

The Wall Street Journal reports that Treasury Secretary Steven Mnuchin has asked Congress to raise the federal debt limit before leaving for summer recess.  While the Treasury Department is already employing cash-saving measures to try and control government debt, which hit Congress’ self-imposed limit earlier this year, analysts suggest such measures would only suffice until the early fall.  WSJ
 
Federal Reserve officials have signaled that a rate hike may be appropriate at their June meeting.  While the outlook for interest rate increases is relatively clear through 2017, much uncertainty remains regarding the timing and magnitude of the Fed’s coming balance sheet reduction. WSJ

The Wall Street Journal reports that Republican members of Congress are still advocating for a border adjustment tax as part of comprehensive tax reform.  The proposal, which would tax imports and exempt exports, has faced bipartisan opposition in Congress as well as stiff resistance from many members of the business community.  WSJ

Federal Reserve Governor Lael Brainard said yesterday that it is unclear whether labor markets have reached “full employment” yet.  Brainard noted that core inflation has shown few signs of accelerating even as the unemployment rate has fallen to decade lows, indicating that there may still be more room for labor markets to tighten.  WSJ

The Financial Times reports that President Trump is submitting his budget proposal for fiscal year 2018 to Congress.  The budget is expected to seek deep cuts to many executive agencies and will also include a proposal to sell off half of the Strategic Petroleum Reserve (“SPR”). FT