Making Sense: In Brief
The week ahead for markets and the economy
Phil: Last week, markets digested fresh consumer and producer inflation reports.
Looking to the week ahead, the headliner will be the Federal Open Market Committee's interest rate decision on Wednesday. The Fed is highly likely to keep the federal funds rate unchanged, but any indication of future monetary policy in either the meeting statement or Chairman Powell's press conference will move markets. Remember, at one point, the futures market priced a high probability that the FOMC would cut the overnight rate at this meeting, but the data did not cooperate, and Fed speakers made it clear they would not be cutting interest rates so soon.
The Committee also releases their quarterly summary of economic projections at this meeting. We will be particularly focused on any changes to the Committee members' forecast of the federal funds rate.
The residential housing market will also be an area of focus this week with homebuilder sentiment on Monday, housing starts on Tuesday and existing home sales on Thursday. Elevated mortgage rates have limited the supply of homes, which has thereby depressed sales, but supported new construction. Any signs of loosening in the housing market this week would be welcome.
So items to watch this week. One, the FOMC meeting, two housing data.
Making Sense In Brief Outro Slide
Brent Ciliano
CFA | SVP, Chief Investment Officer
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
brent.ciliano@firstcitizens.com | 919-716-2650
Phillip Neuhart SVP, Director of Market and Economic Research
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
phillip.neuhart@firstcitizens.com | 919-716-2403
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