@ The White House
In the morning, the President and the Vice President will receive the Presidential Daily Briefing in the Oval Office.
Later in the morning, the President will deliver remarks at the "Change of Office" Chairman of the Joint Chiefs of Staff ceremony at Fort Myer. The Vice President will also attend.
In the afternoon, the President will be interviewed live by Michael Smerconish. In the evening, the President will deliver remarks at a campaign event at a private residence.
@ Wall Street
Personal Income, Consumption, and Prices (Aug.) / Reuters/University of Michigan Consumer Sentiment Index (Final Sep.)
IHS Global Insight nominal personal income to be flat, (and real personal income to be down) in August. August's payroll employment report was dismal with no net jobs added, a decline in the workweek, and falling average hourly earnings.
These results point to a decrease in wages and salaries in August. We expect consumer spending to increase 0.1% in nominal dollars, but adjusted for inflation that translates into a 0.2% decline.
Prices were higher across the board in August, with notable CPI increases for food, gasoline, clothing, and rent. Wage gains are running below price increases and consumer confidence is depressed. August retail sales were flat, indicating that consumers have pulled back.
Clothing, department store, and restaurant sales were down in July and August, while grocery stores and gasoline stations posted August gains?consumers are spending on necessities, not desires.
The core (non-energy and nonfood) PCE price index is expected to increase 0.2%, with its year-over-year growth rate rising from 1.6% in July to 1.7% in August. The Fed will keep a close eye on core inflation, but its current focus is on weak employment and consumer demand, as well on the risk of damaging spillovers from the Eurozone financial crisis.
IHS Global Insight expect the Reuters/University of Michigan?s index of consumer sentiment to inch up to 56.8 in September, from 55.7 in August. The damaging effects on confidence from the debt ceiling crisis and the S&P downgrade may be starting to wear off, but financial markets remain in turmoil and the latest stock market plunge following the Fed's policy decision will reinforce consumer fears of recession.
