Key Takeaways
- The United States has significantly escalated its oil blockade against Venezuela, intercepting and boarding multiple tankers, including one not previously sanctioned, amid rising international tensions.
- White House economic advisor Kevin Hassett anticipates the "biggest tax refund season of all time" next year and a forthcoming "big" housing plan, while noting a 3-month average core inflation rate of 1.6%.
- Hassett, a leading contender for the Federal Reserve Chair, emphasized President Trump's desire for a data-dependent Fed Chair who makes independent judgments, despite daily monetary policy discussions with the President.
- French President Emmanuel Macron has confirmed the construction of a new nuclear-powered aircraft carrier, intended to replace the Charles de Gaulle by 2038, underscoring France's strategic autonomy.
- Global markets showed modest gains over the weekend, with the Dow up 0.04% and the Nasdaq rising 0.19%, while US Oil climbed 0.27% and Gold saw a 0.01% increase.
The United States has dramatically intensified its oil blockade against Venezuela, with reports confirming the interception and boarding of multiple vessels in international waters off the Venezuelan coast. US officials stated that the US is intercepting a vessel off the coast of Venezuela. This action follows President Donald Trump's declaration of a "total and complete" blockade of sanctioned oil tankers entering and leaving Venezuela. Another oil tanker was boarded by the US near Venezuela, according to people with knowledge of the matter, as President Donald Trump intensifies an oil blockade. The US is said to have boarded a third tanker off Venezuela as tensions mount. The intercepted vessels include at least one not previously on the US sanctions list, signaling a significant escalation in the pressure campaign against the Maduro government.
In domestic economic news, White House economic advisor Kevin Hassett outlined several key initiatives and forecasts. Hassett predicts the "biggest tax refund season of all time" next year, with many families potentially saving between $11,000 and $20,000 annually due to recent tax cuts. He also announced a "big" housing plan set to be unveiled early in the new year, with Trump aides reportedly heading to Florida to discuss housing policy. Hassett indicated that the administration is currently observing a 3-month average core inflation rate of 1.6%, which he views as a positive sign for economic stability.
Regarding the future leadership of the Federal Reserve, Hassett, considered a front-runner for the Fed Chair position, reiterated President Trump's preference for a data-dependent candidate who exercises independent judgment. Hassett affirmed that while he engages in daily discussions with the President on monetary policy, the Federal Open Market Committee (FOMC) would ultimately make independent decisions based on data, with the President's opinions carrying "no weight" compared to voting members.
Meanwhile, on the international defense front, French President Emmanuel Macron confirmed the construction of a new French aircraft carrier. The future nuclear-powered vessel is slated to replace the existing FS Charles de Gaulle (R91) around 2038 and will be significantly larger, with a displacement of 75,000 tons and a length of 990 feet. This strategic investment underscores France's commitment to maintaining its naval power and strategic autonomy.
Global markets concluded the weekend with minor upward movements. The DAX posted a 0.07% gain to 24307, while the DOW (DOW) rose 0.04% to 48167. The NASDAQ (NASDAQ) saw a 0.19% increase to 25405, and the FTSE (FTSE) climbed 0.10% to 9890. The HANGSENG (HANGSENG) also edged up 0.02% to 25827. In commodities, GOLD saw a slight gain of 0.01% to 4339, and USOIL increased by 0.27% to 5669. The EURUSD currency pair experienced a minor dip of 0.07% to 11702.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.