The City and State is abuzz with anticipation as investors eagerly await Jerome Powell’s remarks in the upcoming week. In the last communication from the Federal Reserve chair, there were hints that interest rates may remain high for longer than expected, citing concerns over inflation and strong labor market conditions. The latest price data, alongside predictions for a robust employment report, suggest that Powell may continue to maintain his stance.
Powell is scheduled to speak after the Fed’s rate decision, where it is widely predicted that borrowing costs will be held at a two-decade high. Expectations for rate reductions have been pushed back to 2024, with investors now speculating on the possibility of two cuts by year-end. The end of the week will be marked by the release of the monthly jobs report, offering fresh insights into the state of the labor market.
Economists are closely watching for updates on employment costs and job openings, as well as manufacturing figures. Additionally, Canada’s GDP data for February may indicate a slight economic boost, giving the Bank of Canada more flexibility in their policy decisions. In the Eurozone, inflation data may show signs of stabilization, while surveys out of China will shed light on the strength of their economic expansion.
Across Asia, countries like China, Japan, and South Korea are set to release key economic indicators, providing a glimpse into the region’s economic performance. Japan’s industrial output, retail sales, and unemployment rate are expected to be disclosed, while South Korea’s consumer inflation data may influence the central bank’s policy decisions. Elsewhere, Thailand’s new finance minister appointment may ease tensions over monetary policy.
In Europe, the focus will be on inflation data and GDP numbers, with the Eurozone expected to show signs of economic growth. Reports from individual countries like Germany and Spain may reveal variations in inflation rates. Meanwhile, Switzerland’s consumer price data is anticipated to stay below the targeted ceiling, and Turkey’s inflation rate continues to climb despite previous rate hikes.
Latin America is preparing for a slew of economic updates, including Mexico’s first-quarter output data and Brazil’s inflation reports. Chile, Peru, and Colombia are also expected to release key economic indicators, providing insights into their economic landscapes. Central banks across the region may announce monetary decisions, influencing market sentiment and economic outlooks.