The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… I know this will sound like a cliché, but the single most important reason that people lose money in the financial markets is that they don’t cut their losses short. — Victor Spandereo

1. Biden to Deploy Active-Duty Troops to Southern Border as Title 42 Ends — President Biden is sending 1,500 active-duty troops to the southern border, while cities across the country are declaring states of emergency and asking for federal support as the country prepares for a surge of migration expected to accompany the lifting of Title 42 border restrictions next week. A large number of migrants have already been illegally entering El Paso, Texas, in recent days. Hundreds unable to find spots in shelters gathered in the past few days around downtown churches in the border city looking for help, according to photos and videos of the scene.
2. Federal Reserve Raises Rates, Signals Potential Pause — the Federal Reserve approved another quarter-percentage-point interest-rate rise and signaled it could be done lifting rates after that. officials said in their new statement Wednesday they would monitor economic and financial-market developments and the effects of their earlier rate increases “in determining the extent to which additional policy firming may be appropriate to return inflation to 2% over time.”
The statement used language broadly similar to how officials concluded their interest-rate increases in 2006, with officials indicating any further change in rates was more likely to be an increase than a decrease.
3. Robust Hiring in April Shows U.S. Job Market Remains Hot in Cooling Economy — employers added 253,000 jobs in April, the best gain since January, the Labor Department said Friday. Job growth was revised lower in February and March. The jobless rate fell to 3.4% last month, matching the lowest reading since 1969. The low unemployment rate keeps upward pressure on wages, which grew 4.4% in April from a year earlier. That was slightly higher than a 4.3% annual increase in March. Over the past year, inflation hit historic highs, economic growth slowed, the Federal Reserve rapidly raised interest rates and stress emerged in the banking sector. Many economists anticipated those challenges would trigger the labor market to crack.
4. Scrambling to Avoid Default, White House Weighs Debt-Limit Fallback Options — The Biden administration and Capitol Hill leaders are scrambling to avoid a first-ever government default that could arrive as soon as June 1, taking potential alternative strategies more seriously after months of deadlock over raising the country’s borrowing limit.
Publicly, both Republicans and Democrats are still sticking to their demands as the clock ticks. GOP lawmakers are seeking to force cuts to federal spending in exchange for supporting raising the debt limit, while Democrats continue to call for a debt-limit increase without any other policy conditions. The new, accelerated timeline means lawmakers may not have the time to negotiate a broad agreement on contentious budget questions. One way to meet the rapidly approaching deadline would be to raise the debt limit enough to allow the government to keep paying its bills for a few more months, rather than a longer-term solution.

The week ahead — Economic data from Econoday.com: