Investors eagerly await Federal Reserve Chair Jerome Powell’s remarks this week, looking for clues on the central bank’s stance on interest rates. Powell had previously indicated that borrowing costs may remain high for longer due to inflation and a strong labor market.
The latest price data suggests that underlying inflation remains stubborn, likely keeping the Fed’s stance unchanged. The central bank is expected to hold borrowing costs at a two-decade high in its upcoming rate decision. Expectations for rate cuts have been pushed further into 2024, with investors betting on at most two cuts by the end of the year.
In addition to Powell’s remarks, the monthly jobs report will provide a fresh look at the US labor market. Economists expect moderate growth in non-farm payrolls in April.
Global economic updates to watch out for this week include Canada’s GDP data, euro-zone inflation and growth figures, and Chinese surveys on economic expansion. In Asia, focus will be on official purchasing manager index data from China, industrial output from Japan, and consumer inflation from South Korea.
Euro zone inflation is expected to stall in April, with minimal GDP growth in the first quarter. Switzerland will release consumer price data, while Turkey will be watching for progress in slowing inflation.
Latin America will see Mexico’s first-quarter GDP data, Brazil’s inflation and unemployment reports, and Colombia’s central bank is expected to cut its key rate.
Additional updates from Canada, the euro zone, Asia, and other regions will be released throughout the week, providing further insights into the global economic outlook. Stay tuned for more updates on ‘Road Rug Cars’.
