Infrastructure Plan Focuses on Regulation, FOMC Pushes Dollar Up
August 16, 2017
President Trump’s infrastructure plan is largely based on removing regulations that would prepare the country for climate change. The FOMC’s anticipated minutes have pushed the dollar up. Britain’s unemployment dropped to it’s lowest level since 1975.
- Infrastructure executive order details roll back regulation. President Trump signed an executive order Tuesday afternoon which would roll back infrastructure regulations to speed up new construction projects. Of the specific regulations he targeted, one was a key provision of Obama era building rules that required that the federal government to account for climate change and the resulting rise in sea level when building. Other, more modest provisions include combining agency approval decisions and limiting the length of review time for projects to 90 days. [NYTimes]
Economic Indicators & News
- US dollar gains ahead of FOMC minutes. A combination of a likely increase in rates by the Fed and calm over the threat global nuclear war has pushed up the dollar to its highest level in three weeks. The dollar also benefitted from excellent retail sales data Tuesday, which beat analyst expectations. Economists and financiers think it likely that, due to strong fundamental economic data, the Fed will start to relax its financial injection into the economy by selling some of its $4.2 trillion in bond holdings, and will raise rates in December. However, nothing is certain, and this afternoon’s FOMC minutes will provide a clearer picture as to the impacts of soft inflation on rate hike decisions. [Reuters]
- UK Labor data beats expectations, boosting pound. Wage growth beat expectations and unemployment fell in the UK in July, halting the 2-day decline in sterling. Wages grew by 2.1%, and unemployment dropped to 4.4%, the lowest figure since 1975. However, other data out of the UK economy has been relatively unimpressive, making a rate hike by Bank of England less likely. While this report is good news, economists and traders indicate they expect the stronger performance of sterling to be temporary. [Bloomberg]