Hurricane Harvey

Hurricane Harvey will probably cause $75 billion in economic damage, less than Katrina’s $130 billion, but still making it the second most costly storm just ahead of Superstorm Sandy’s $71 billion. Crude prices are down 3% as refineries have shut, reducing demand but causing gasoline prices to rise by a similar amount. Lumber is also up slightly on reconstruction expectations. Unemployment will temporarily rise, but overall GDP will be unaffected.