A government shutdown would reduce GDP growth by an estimated 0.2 percentage points for every week it goes. Earlier congressional actions on the payroll tax expiration and the sequester have already weakened economic growth, as seen by the latest numbers.
Fed decision not to taper buoyed Wall Street, but James Bullard, head of the Federal Reserve Bank of St. Louis, says a cutback in bond-buying could come as early as next month, depending on the economy. Also this week, housing posts mostly strong numbers, JPMorgan agrees to nearly $1 billion settlement, and the owner of Olive Garden and Red Lobster cuts jobs.
The Federal Reserve and Fed Chief Ben Bernanke surprised Wall Street by announcing the Fed would not reduce its stimulus purchases to boost the economy. Because mortgage rates had surged in anticipation of a Fed move, Wednesday's announcement could send mortgage rates down and give the housing market a big bounce.
Retail sales rose 0.2 percent in August, half the rate analysts expected. Consumer sentiment falls, mortgage rates rise, and Obama administration denies report that it has picked a new Fed chairman.
Midway negotiations end as one bidder drops out and Chicago Mayor Emanuel calls it quits. Also this week in the economy: unemployment falls for the wrong reasons; Beige Book reveals modest to moderate economic growth; and Yahoo! picks a new logo.
Auto sales for August are on pace to have their best month in six years, with pickup trucks leading the charge. But along with higher auto sales come higher prices.
Weak housing numbers released this week have some analysts worried that the housing recovery is losing momentum. Personal income lags, durable goods fall, and Dunkin' Donuts gets in hot water for a 'blackface' ad campaign in Thailand.
A controversial CEO, Ballmer has struggled to keep Microsoft relevant as the Internet and smartphones pass the PC by. Also this week: Fed minutes released, housing sales send mixed signals, J.C. Penney gets 'poison pill.'
New home sales fell a whopping 13.4 percent in July, an unexpected drop that has darkened the sunny outlook for the US housing recovery. Climbing mortgage rates and higher prices could be to blame.