Fiscal consolidation is the watchword heading into Wednesday’s Autumn Budget.

The long-awaited and heavily trailed statement from Rachel Reeves, the Chancellor of the Exchequer, is expected to reaffirm Labour’s manifesto pledge not to increase the tax burden on working households.

Reports last week suggested Reeves had rejected the idea of raising income tax following better-than-expected fiscal projections from the Office for Budget Responsibility (OBR).

Economists estimate a fiscal shortfall of GBP 20–30bn. Analysts say Reeves effectively has three options:

#1 Borrow more by loosening fiscal rules
#2 Reduce spending
#3 Raise taxes

Deutsche Bank’s Sanjay Raja said the bulk of the Chancellor’s consolidation is likely to come from extending the freeze on personal tax thresholds. “We also expect the Chancellor to push through a medley of tax rises (GBP ~30bn) targeting wealth (dividends, capital gains tax, etc.), expanding the National Insurance Contributions base, and a slew of sector-specific taxes. Higher taxation on housing (council/mansion tax) will also likely feature in the Budget,” he said. (LiveSquawk – Continue Reading)

White House National Economic Council Director Kevin Hassett is seen by advisers and allies of President Donald Trump as the frontrunner to be the next Federal Reserve chair, according to people familiar with the matter, as the search for a new central bank leader enters its final weeks.

With Hassett, Trump would have a close ally whom the president knows well and trusts installed at the independent central bank, the people said, speaking on the condition of anonymity. Hassett is seen as someone who would bring the president’s approach to interest-rate cutting to the Fed, which Trump has long wanted to control, some of the people said. (Bloomberg – Continue Reading)

President Donald Trump could name a replacement for Federal Reserve Chair Jerome Powell by Christmas, according to Treasury Secretary Scott Bessent.

“I think there’s a very good chance that the president will make an announcement before Christmas,” Bessent told CNBC on Tuesday morning. “But it’s his prerogative, whether it’s before the Christmas holidays or in the new year."

Bessent added that he thought "things are moving along very well" in the search process. He said he had one interview with a candidate scheduled for later Tuesday, the final one in the second round of interviews. (Quartz – Continue Reading)