Investors on the edge of their seats as Federal Reserve Chair Jerome Powell’s remarks loom in the coming week. Speculation is mounting on when the Federal Reserve will make a move to cut interest rates as borrowing costs remain high.
Powell had previously hinted at holding off on rate cuts due to persistent inflation and a strong labor market. The latest price data continues to show stubborn underlying inflation, and expectations for a strong employment report may not be enough to sway Powell’s stance.
The Federal Reserve is expected to keep borrowing costs at two-decade highs in its rate decision on Wednesday, with no rate reductions expected until 2024. The monthly jobs report at the end of the week will give further insight into the US labor market.
Key economic indicators from countries such as Canada, Eurozone, China, and Turkey will also be released during the week, with a focus on inflation data, GDP numbers, employment costs, job openings, and manufacturing figures across different regions.
Central banks in Norway, Colombia, Czech Republic, Malawi, and Norges Bank are set to make monetary decisions, while Mexico and Brazil are expected to release economic data showing growth slowdowns. Chile, Peru, and Colombia also have key economic reports scheduled.
In addition, key appointments in Thailand and updates on global forecasts from the OECD are also on the agenda for the week. Investors and analysts alike will be closely monitoring these events for clues on the direction of the global economy.
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