We expect to learn next week that second-quarter GDP growth slowed to only 1.6% annualised, from 3.1% in the first, which should reinforce expectations that the Fed will cut interest rates at the FOMC meeting a week later. But politics are likely to take centre stage next week. The risk is that Robert Mueller’s testimony on Wednesday could derail efforts by the administration and Congress to finalise a budget deal and raise the debt ceiling before the summer recess begins on Friday.
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