DACA Deal From Senate, Inflation Fears Rise
February 14, 2018
Bipartisan Senate group has reached DACA deal; Consumer Price Index jumps, stoking inflation fears.
- Bipartisan Senate group has reached DACA deal. Republican Senators Susan Collins and Lindsey Graham have announced that a bipartisan working group dealing with immigration issues has reached a deal, offering a pathway to citizenship for 1.8 million people brought to the US as children in exchange for $25 billion over a decade to strengthen border security. The deal is narrow in scope, and doesn’t address family based immigration or the diversity lottery. The deal also comes as a second judge has blocked President Trump’s efforts to end the DACA program, calling it “arbitrary.” Language on the compromise bill will be available later Wednesday for review by the whole Senate body. [Bloomberg]
Economic Indicators & News
- Consumer Price Index jumps, stoking inflation fears. In the month of January alone, the Consumer Price Index increased 0.5%, with an overall increase in the Index of 2.1% over the past 12 months. The unexpected increase spooked traders, depressing stock prices as investors feared inflation would prompt the Federal Reserve to raise interest rates more quickly in 2018. The Fed has two interest rate hikes tentatively scheduled for the new year, but lagging inflation had been the biggest reason the Fed had so slowly raised rates in 2017. With inflation finally catching up, Dow futures fell more than 200 points, and the S&P and Nasdaq futures declined 30 points and 73 points each. [The Hill]