Late Sunday, a coalition of Democrats and Republicans pushed the $1 trillion bipartisan infrastructure package closer to passage despite a few holdouts. The package, which has become one of President Biden’s top priorities, promises to unleash billions of dollars to upgrade roads, bridges, broadband internet, water pipes and other public works systems undergirding the nation. According to CNN, a 68-29 vote invoked cloture on the underlying legislation. A final vote will happen Tuesday morning unless there’s an agreement to speed up the process. In other news, between new reports on key jobs data, inflation data, and corporate earnings, investors have a lot to look forward to this week. While one investment strategist believes inflation will be hotter than the Fed predicts, causing officials to taper their bond-buying program by the end of the year.
Senate heads toward final vote on bipartisan infrastructure package this week
The massive $1.2 trillion bipartisan infrastructure package is poised for a final vote in the Senate this week after clearing the last procedural hurdle following months of furious negotiations.
The chamber on Sunday evening voted 68-29 to invoke cloture on the underlying legislation, setting up a final vote after the 30-hour post-cloture time expires early Tuesday morning, unless there’s an agreement to speed up the process.
Following the vote on Tuesday, the Senate will quickly shift their attention to the budget resolution, which needs to pass both chambers of Congress first before Democrats can move on their separate $3.5 trillion package, which they hope they can pass with Democratic votes.
“The two track process is moving along,” Majority Leader Chuck Schumer said. “It’s taken a while, but it’s gonna be worth it, as, hopefully, we pass both bills very, very soon.”
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Yahoo Finance/Emily McCormick
Inflation data, Disney earnings: What to know this week
Investors have a packed slate of economic data to look forward to this week, with new reports on consumer and producer price inflation set for release. More corporate earnings results will also trickle in.
One of the closely watched economic data points this week will be the U.S. Bureau of Labor Statistics’ consumer price index. This print will reflect the extent of consumer price increases over the past month, with outsized demand during the recovery still exerting upward pressure on prices.
The consumer price index, excluding volatile food and energy prices, is expected to have risen by 4.3% in July over last year, pulling back just slightly from June’s 4.5%, or the fastest pace in three decades. Core consumer prices are also expected to have advanced for the fourteenth consecutive month, or by 0.5% after June’s 0.9% monthly gain.
A central debate for investors, however, will be about how long-lasting these price increases ultimately prove to be. Many of the categories of goods that saw the biggest price increases were in areas considered “transitory,” or those closely tied to the rebound in economic activity and reopening of the economy. Prices for used cars and trucks, for instance, surged by 10.5% in June to comprise more than a third of the increase across all items.
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Inflation data will drive the market: Investment strategist
Lebenthal Global Advisors President Dominick Tavella predicts the Fed will taper their bond buying program by the end of the year.
You can watch the full interview, here.