Inflation in wholesale goods boomed higher in July, led primarily by energy prices, gasoline specifically as the oil rebound seems to be holding as the economy improves.
Fincancial markets are surging today on news of the Russian Federation registering the first Chinese coronavirus vaccine.
President Trump is continuing to find ways to move the economy forward in spite of a deadlocked Congress.
“We’re looking at also considering a capital gains tax cut, which would create a lot more jobs,” Trump said at a recent news conference.
The president can’t unilaterally cut the 20% long-term capital gains rate without Congress, but some advisers tell him he could issue an executive order that would slash tax bills for investors when they sell assets. The move, known as indexing capital gains to inflation, adjusts the original purchase price of an asset when it is sold so no tax is paid on appreciation tied to inflation, wrote Bloomberg.
Small Business Optimism also softened during July.
The Small Business Optimism Index dipped 1.8 points in July to 98.8 from 100.6, less than expected though near the historic average. Four of the 10 index components in the NFIB index improved, 5 declined and 1 was unchanged, wrote People’s Pundit Daily.
Small business owners lowered their six month outlook amid concerns the economy is not fully reopening quickly enough. The percentage expecting better business conditions in the next six months declined 14 points to a net 25%.
Producer Price Index (YoY) (Jul) printed at -0.4% vs -0.7% consensus estimate.
Producer Price Index ex Food & Energy (MoM) (Jul) printed at 0.5% vs 0.1% estimate.
Producer Price Index ex Food & Energy (YoY) (Jul) printed at 0.3% vs 0% estimate.
Producer Price Index (MoM) (Jul) printed at 0.6% vs 0.3% estimate.