An Uncertain Birthday
Friday was the 249th anniversary of the US Declaration of Independence, signed on the 4th of July 1776 in Philadelphia. Next year will see huge celebrations and 250 candles on the cake. These will not be enough to overcome the deep political divisions, however, and the focus will quickly turn to the midterm elections in November. Whether the strength of the US economy will still be cheered is a big question for investors around the world. If the US economy can maintain a degree of vigour, it can sustain the rally in US equities. However, it might also limit the scope for interest rate cuts, at least while Jerome Powell is holding the reins as Federal Reserve chair.