Although he was optimistic about the recent inflation data, the president of the Federal Reserve Bank of Philadelphia, Patrick T. Harkersaid this Tuesday that it is still not enough to justify any cut in interest rates in the economic forecasts of the United States Federal Reserve.
In his comments to the Global Interdependence Center, Harker said he expected an interest rate cut “by the end of the year,” but that it still depended on seeing further improvements in inflation..
The consumer price index (CPI) for May showed improvements “promising” on price pressures, but Harker said he needed to see even better data in the future. “‘Promising’ falls short of the confidence I want to have before cutting rates. “I want inflation to be on a sustainable path back to target,” Harker said.
Harker’s comments coincide with statements by the president of the Minneapolis Federal Reserve, Neel Kashkariwho said on CBS’ Face the Nation this weekend thatany rate cut will depend on data.
Kashkari said the rate cut is likely toward “the end of the year.” “We are in a very good position at the moment to take our timeget more inflation data, get more data on the economy, on the labor market, before having to make decisions,” Kashkari said.
What the market analyzes
In a week shortened by Wednesday’s holiday in the United States, investors waited attentively for comments from representatives of the Federal Reserve and data from various economic reports that could show whether inflation is likely to continue its downward path. Markets will be closed Wednesday for the Juneteenth national holiday.
The housing market will gain greater attention with the publication of data on existing home sales, home construction starts and builder confidence, ssimultaneous with earnings reports from builders Lennar (LEN) and KB Home (KBH).
Tuesday June 18
Advanced Retail Sales (May) Industrial Production and Capacity Utilization (May) Business Inventories (April) Lennar and KB Home Earnings Report Remarks by Dallas Fed President Lorie K. Logan; Tom Barkin, president of the Richmond Fed; Alberto Musalem, president of the Kansas City Fed; and Austan Goolsbee, president of the Chicago Fed
Wednesday June 19
Juneteenth National Independence Day Holiday, Markets Closed Housing Market Index (June)
Thursday June 20
Initial Jobless Claims (Week Ending June 15) Home Construction Starts (May) Earnings Report from Accenture (ACN), Kroger, Darden Restaurants (DRI), and Jabil (JBL) Comments from Tom Barkin, President from the Richmond Fed
Friday, June 21st
US S&P Global Preliminary Composite PMI (June) Existing Home Sales (May) US Leading Economic Indicators (May) CarMax (KMX) Earnings Report
Source: Ambito
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