Investors will be especially attentive to the words of the president of the institution, Jerome Powell, for any indication about future monetary policies.
The next meeting of the Federal Reserve this Wednesday, March 20, marks the financial compass of a market attentive to rates. With the Fed rate at 5.5%, expectations are that it will remain unchanged with a 99% probability.
Investors will be especially attentive to the words of the president of the institution, Jerome Powell, looking for any clues about future monetary policies. It should be noted that, for the first time this year, markets now only forecast three interest rate cuts in 2024.
It is also the first time that the markets align with latest Federal Reserve guidance. The odds of a rate cut this week drop to 2% and the odds of a rate cut in May have fallen to about 7%.
Just three months ago, markets expected seven rate cuts in 2024with rate cuts starting this month. As inflation data starts to rise again, three rate cuts are starting to look optimistic.
Data: the financial compass of the week
On a global level, The week of March 18 to 22 will be full of relevant economic events. From the final CPI for February in the eurozone to the Bank of England interest rate meeting, passing through key data such as the IFO business confidence index in Germany and the business results of Enel, Accenture, Nike and FedEx, among others.
In Pacific Asiaattention will be focused on the Bank of Japan’s monetary meeting and the People’s Bank of China’s lending rate, while in Europe, eyes will be on the CPI and the IFO index in Germany, as well as the meetings of shareholders of large companies such as Enagás, Santander, CaixaBank and Bankinter.
Below, we detail some of the most notable quotes of the week:
Monday
- Key economic data from China, including industrial production, unemployment rate and retail sales.
- Publication of the final CPI for February in the eurozone, along with other relevant economic data.
Tuesday
- Bank of Japan rate meeting and Reserve Bank of Australia rate decision.
- Publication of economic data in Japan and the eurozone, as well as construction permits and housing starts in the United States.
Wednesday
- Holiday in Japan for the spring equinox.
- Meeting on Federal Reserve interest rates in the United Statesalong with other relevant economic data.
Thursday
- Publication of economic data in Japan and the eurozone, as well as the interest rate meeting of the Bank of England and the Swiss National Bank.
- Publication of economic data in the United States, including the Philadelphia Fed survey and existing home sales, as well as business results from Enel, Accenture, Nike and FedEx.
Friday
- Release of economic data in Japan and the United Kingdom, as well as the IFO confidence index.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
