Weekly Commentary: Debt ceiling showdown redux

We remain pro-risk and opt to look through any short-lived volatility that could result from a battle over lifting the U.S. debt limit and funding the government. U.S. consumer price increases slowed in August, but inflation pressure has broadened to core items less affected by the pandemic. Several central bank policy meetings are in focus. We don’t expect growing inflation pressure to lead to an earlier rate liftoff by the Federal Reserve.