Inflation, inflation, inflation. A sticky situation for the Fed to have to deal with? or is it time to begin thinking about cutting rates and dealing with the potential backlash of a premature response?
The question on every inquisitive market mind right now is not if but when the US Federal Reserve decide the time is right to begin cutting interest rates as they currently sit at the highest rate seen since 2001.
This week, we'll have a further insight into just how sticky inflation is in the US as we view the CPI & Retail Sales prints on Wednesday, providing us with a better understanding of how the Fed may react throughout Q3-Q4 of 2024 although "Boston Fed President Susan Collins signaled rates will likely need to be held at a two-decade high for longer than previously thought to damp demand and reduce price pressures". (source: Bloomberg - 5 Things to Start Your Day: Europe)
In other news this week we have UK & Australian Employment data, Euro zone & Japanese GDP and Chinese Retail Sales among others.