Investors received a much awaited update on the Bush tax cuts last week. President Obama and Republicans have a tentative deal to extend tax cuts for all Americans for two years as well as extend jobless benefits through 2011. The Federal Reserve said Americans got richer from July through September as net worth increased by $1.3 trillion dollars, and consumer credit rose by $3.4 billion dollars in October led by an increase in student loans.
Besides earnings reports from Fed-Ex, Oracle and General Mills this week, investors will analyze on interest rates, housing and inflation.
The Federal Reserve will meet to discuss the economy and interest rates. At their November meeting, the fed kept the Federal Funds Rate— which affects mortgage, credit card and student loan rates- in the zero to 0.25 percent range, where it’s been since December 2008.
We’ll get a read on the economy with the November Housing Starts report. In October, new home construction fell 11.7 percent with the Western and Southern regions of the U.S suffering the biggest declines, but building permits— a gauge of future construction—ticked up slightly.
Is inflation a concern? We’ll find out with the November Consumer Price Index report— which tracks price changes for food, clothing, and energy. In October prices rose 0.2 of one percent driven by higher gas prices.