Monitoring Inflation Data Ahead of Federal Reserve’s March Meeting
Investors are eagerly awaiting the Federal Reserve's next decision on rates, with the market in agreement that it will raise the benchmark rate by another quarter of a percentage point when it meets next month. Markets also expect a similar increase in May. As the Fed heads into its March meeting, it will be closely monitoring inflation data, with the expectation that the benchmark rate will peak above 5% sometime this summer.
Ahead of the meeting, reports on consumer and producer price inflation, retail sales, and the Dow Jones Industrial Average futures have all raised concerns that the Federal Reserve could raise rates higher than currently anticipated. At 7:20am Eastern Time, the Dow futures had dropped 20 points, the S&P 500 futures were down 495 points, and the Nasdaq 100 futures were up 15 points.
The consumer price index (CPI) for January came out last week, slightly exceeding estimates month-over-month at 0.5% headline and up 0.4% core, excluding food and energy. Year-over-year is slightly higher than expected at 6.4% headline and 5.6% core, but slightly lower sequentially.
The producer price index for January will be released at 8:30 EST (13:30 GMT). It is predicted that the monthly figure will increase by 0.4%, and the yearly measurement will go up by 5.4%. Core PPI, which removes food and fuel, is expected to rise 0.3% for the month and 4.9% for the year.
The consumer price index for January is set to be released at 8:30am Eastern Time (13:30 GMT It is anticipated that the monthly revenue will increase by 0.5% and the annual revenue will increase by 6.2%. It is anticipated that the Core Consumer Price Index (CPI), not including fuel and energy costs, will increase by 0.4% this month and by 5.5% over the course of
The retail sales report for January is scheduled for release at 8:30 Eastern Time (13:30 GMT). It is predicted that the monthly reading will increase by 1.8% from December, following a decrease of 1.1% the month prior. At 10.00 am ET, the Business Inventories from the Commerce Department for December will be released. It was determined that there should be an increase of 0.3 percent, compared to the 0.4 percent rise in November.
0. “Producer prices, Applied Materials, Constellation Energy: 3 things to watch By Investing.com” Investing.com, 15 Feb. 2023, https://www.investing.com/news/stock-market-news/producer-prices-applied-materials-constellation-energy-3-things-to-watch-3004590
1. “Wall Street Poised To Start Lower” RTTNews, 16 Feb. 2023, https://www.rttnews.com/3344652/wall-street-poised-to-start-lower.aspx
2. “Fed minutes, PCE inflation, Walmart earnings: What to know this week” Yahoo News, 19 Feb. 2023, https://news.yahoo.com/stock-market-week-ahead-pce-inflation-federal-reserve-retail-earnings-142330965.html
3. “The Club's top 10 things Tuesday: CPI, volatile market, oil dips” CNBC, 14 Feb. 2023, https://www.cnbc.com/2023/02/14/the-clubs-top-10-things-tuesday-cpi-volatile-market-oil-dips.html
4. “Wall Street Might Open Broadly In Negative Territory” RTTNews, 15 Feb. 2023, https://www.rttnews.com/3344275/wall-street-might-open-broadly-in-negative-territory.aspx
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