Fed speak will be one of the highlights
- Powell testifies in Congress
- Fed bank stress tests
Expect a handful of media appearances as well. If there’s a message the Federal Reserve wants to send, they will certainly have an opportunity.
The economic data calendar also has some highlights but the week will start quietly with nothing market moving scheduled for Monday. It picks up from there.
- Existing home sales
- Richmond Fed
- Markit manufacturing and services prelim
- New home sales
- Trade balance
- Durable goods orders
- Q1 GDP (third look)
- Initial jobless claims
For the PCE report, CIBC forecasts an above-consensus reading of +0.6% on personal spending (+0.3% exp) and is in-line on the +3.5% y/y core inflation number.
“Although households have
ample savings as a result of past fiscal stimulus to spend,
labor shortages and supply chain issues are proving to
be a headwind to activity, while quickly rising prices in
some areas of the economy could pose a threat to future
demand. The escalation in prices has been expected
by the Fed and it will look through the acceleration as
transitory and remain focused on the recovery in the