Powell’s appearance at Congress will focus investor attention

By: News Team

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Powell's appearance at Congress will focus investor attention

Federal Reserve Chairman Jerome Powell’s appearances in the U.S. Congress and Senate will be the main benchmark this week for investors looking for signals on the central bank’s next steps to combat slow-than-expected bottom-up inflation.

CMC Markets analyst Luis Francisco Ruiz explains in statements to EFE that the markets are still very aware of the evolution of prices and “how far interest rates are going to rise” to contain them, the main objective that the large central banks have set.

Powell will appear on Tuesday and Wednesday in both US legislative chambers to explain the decisions and the direction of the Fed and analysts expect some message in the future to anticipate the next movements of interest rates or monetary cooling.

This week the central banks of Canada, Australia and Japan are holding monetary policy meetings, where Kazuo Ueda has just been appointed as the new governor, a post he will occupy in April.

The other big indicator for stock markets will come on Friday with the release of U.S. unemployment data in February.

“It is expected that 200,000 jobs will be created and the rate will be around 3.5%. It is a market in full employment that makes it difficult for inflation to reduce,” explains Ruiz.

Tomorrow the indicator of investor confidence in the euro zone (sentix) of March and durable goods orders are released and on Tuesday the trade balance of China and factory orders, both corresponding to last month.

On Wednesday, Eurostat will publish the final data of the eurozone’s GDP in the fourth quarter of last year, which according to leading indicators resisted better than expected and avoided recession and on Thursday China’s February CPI.

In addition to the employment report, the final inflation data for Germany in February will be released on Friday.

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