Why leaks and rumors will be huge next week
Anything leaking out of Trump's tax plan could have major implications
An overhaul of the US tax code is massive market event. Trump said today he expects it to be released Wednesday or shortly afterwards.
What could be a major factor in next week is the details leaking out, or even rumors.
Let's say there is a border-adjustment tax? Retailers are going to get beat up and currencies of its major trading partners too.
There are so many possibilities that it's impossible to map out because the US tax code affects every company and person in the country along with its trading partners.
It's also tough to say what's priced in. Trump is talking about the biggest tax cut ever so that's surely stoked expectations.
Of course, there's the plan and there's what Congress will pass but you still have to react to the first draft.
In any case, it's going to be one more thing that makes for a volatile week ahead. It's a big test of how well the administration can control leaks. This stuff isn't like leaking a phone call log, it's major market moving stuff and White House staff should know that but many of them are new.
Update: The leaks have already started. Bloomberg, citing a 'senior administration official' reports the plan likely won't include a border adjustment tax.