This week, the deadline to raise the country’s debt limit is upon us. Last week, lawmakers and President Obama held negotiations about a possible short-term budget deal, but no agreement was announced.
If the government shutdown continues, expect more delays to scheduled economic reports.
Bond markets are closed on Columbus Day.
Federal Reserve Chairman Ben S. Bernanke is scheduled to speak before the Bank of Mexico in Mexico City.
New York Fed President William Dudley is scheduled to speak before the Bank of Mexico.
The release of September’s consumer price index depends on the status of the government shutdown. The index, which acts as a measure of inflation, rose 0.1 percent in August and was 1.5 percent higher compared with the same time last year.
The National Association of Home Builders releases its October housing market index at 10 a.m. The index surveys homebuilders about the state of housing and the general economy. It is expected to drop a notch to 57, from 58 last month.
The Fed releases its anecdotal look at the state of the economy, known as the “beige book,” at 2 p.m.
Unless a deal to raise the debt limit is reached, the federal government begins to run the risk of defaulting on its bills starting today, according to Treasury Secretary Jack Lew.
Weekly jobless claims, out at 8:30 a.m., are expected to drop to 330,000 this week. The number of claims spiked to 374,000 last week, but that was mainly because of a backlog of claims processed in California as well as the shutdown.
The release of housing starts and industrial production data depends on the status of the shutdown. In August, there were 891,000 housing starts, an increase of nearly 1 percent from the previous month.
The release of industrial production data also depends on the status of the shutdown. Production increased by 0.4 percent in August.
Fed governors Daniel Tarullo and William Dudley are scheduled to speak at a Federal Reserve conference about systemically important banks in Washington.