Biggest Risks Are Coming, and It Comes in Key Deadlines
The Trump Administration is going to face no less than 5 major deadlines over the next four months. From funding payments to insurance companies for Government-match portions of Obamacare to raising the debt limit, there are a number of deadlines that the marketplace and the rest of us have to get through over the course of the fall.
If we throw in the notion that the Federal Reserve will also weigh-in on interest rate policy, there are some big things coming that could reverse some economic outlooks and create some stock market volatility this fall.
The administration has already agreed to make their August payment to insurance companies on the 21st under the Obamacare program. For now, decisions on Obamacare and funding Federal subsidy payments will continue on a month-by-month basis.
The big deal will come on September 5th when insurance companies will be required to submit their rates for 2018. Insurance companies have reportedly until September 27th to settle contracts with the Federal Government in order to be able to offer plans on HealthCare.gov.
The debt ceiling debate will have to heat up as well. Current projections suggest that a decision on raising the debt limit will have to be made by early October – or the Government faces a shutdown. There’s currently a 50% chance that the Freedom Caucus and others could actually shut the Government down.
Just note that we have historically seen a lot of volatility on the stock market as risks of Government shutdowns have loomed. We’ll see how the Trump Administration handles this first shutdown challenge as it comes. It will definitely be a big topic of discussion for analysts and major news media outlets.