U.S. Economic News
October 20, 2017
U.S. Economic Indicators
Existing home sales inched up 0.7% to a seasonally adjusted annual rate of 5.39 million in September, but are 1.5% below year-ago levels. NAR notes that demand remains healthy, but inventory remains scarce, especially at the lower end of the market. NAR Report
U.S. News
The Financial Times reports that U.S. Senate Republicans passed a budget resolution last night, a key step towards enacting tax reform. The budget resolution allows Republicans to pass tax reform legislation via reconciliation, which only requires a simple majority in the Senate instead of the usual 60-vote supermajority. FT
According to the Wall Street Journal, professionals in the retirement industry are worried that the Republican tax plan may limit the amount of pre-tax contributions individuals can make to retirement savings plans. Republicans have been searching for ways to generate revenue to offset massive tax cuts, and congressional staffers say that committee members have been suggesting a cap of $2,400 for tax-free contributions. WSJ
William Mauldin of the Wall Street Journal writes that Congressional trade lawyers have begun outlining legal strategies for challenging a possible U.S. withdrawal from NAFTA. Lawyers say that the administration is sure to face legal challenges from industry associations whose members depend on North American supply chains, which would be threatened if the U.S. were to withdraw from NAFTA. WSJ