Registered Investment Adviser Caleb Lawrence
Volatile early trade sends the major averages into the final hour about even despite disappointing data. The Chicago Fed National Activity Index slipped .14 in July to -.01, the 3-month moving average fell .14 to -.05. Declines were broad based with all but employment dragging on the indicator.
The Trump administration sees another high-level defection over the weekend after Steve Bannon former chief strategist through in the towel and walked. Never mind the recent CEO exodus from the administrations advisory councils. This marks the 7th significant cabinet member loss for the administration in just 9-months as it heads into the oh so important budget and debt ceiling negotiation period expected to get under way at the beginning of September after Congress returns from its month-long recess after the Labor Day weekend. With the US Treasury expected to run out of money in early September, it will be an uphill battel for the Republicans who have made a name for themselves in years past pretending to be fiscally conservative and debt averse. As their choices are severe budget cuts, dramatic tax increases, a bit of both, or a very public display of blatant hypocrisy. Given what I know about politicians, my money is on hypocrisy.