The coming week should be filled with high drama for markets as President Donald Trump is expected to name a new Fed chair, and Congress is set to unveil much-anticipated tax reform legislation.
It could be one of the most pivotal for markets in a long time. Trump's Fed pick has the potential to spearhead a major shift in monetary policy and deregulation, and interest rates have already been rising on speculation ahead of that announcement, expected by Friday.
The tax bill is also of big market interest since it has already been a catalyst for broader stock market gains and could drive fiscal stimulus and boost corporate earnings if Congress approves the bill with anywhere near the tax cuts expected. That will potentially be unveiled on Wednesday.
These two events are expected during what is already a super busy market week and an important time for the economy, which just notched the best two quarters in a row in three years. The 3 percent third-quarter growth came despite damage from hurricanes and heralds potentially stronger reports for October data.
The week is packed with events. There's a Fed meeting Tuesday and Wednesday, a Bank of England rate meeting Thursday, the Treasury's refunding announcement Wednesday, and a lot of economic data, from personal consumption to ISM and jobs, all week long. The Fed is not expected to raise interest rates until December, but the Bank of England is expected to hike rates Thursday.
"There's certainly going to be catalysts for volatility," said Art Hogan, chief market strategist at Wunderlich Securities.