Investing.com – Investors will look forward this week to how the Fed responds to fears of a recession caused by a reversal of the bond yield curve.
The Fed will hold its annual meeting later this week, with President Officer Powell making statements Friday. The Fed will announce on Wednesday, in which it cut interest rates for the first time since the financial crisis.
That, along with publishing, economic data and publishing more results will give investors a lot to think about. This is what you need to know to start your week.
1. acxhexon hole
On Thursday, Fed officials will meet in Jackson Hull, Wyoming, for an annual summit to analyze investors for any indication of the future direction of monetary policy. The main event of the forum will be the speech of Fed President Jerome Powell on Friday.
Markets have already reached a quarter of a point in September, now with the expected turnaround of the yield curve for two / ten years. It is unclear, however, whether the Fed could still be tempted to take drastic measures to avoid a possible economic recession in the context of rising trade tensions between the United States and China.
2. Thirty minutes
The United States Central Bank will release the minutes of its meeting in July on Wednesday, revealing the support force for its first pruning in more than a decade. Powell described this reduction as a "mid-cycle adjustment" rather than the start of a more important acceleration cycle.
The decision was not unanimous, as two members of the FOMK voted against the rate cut, citing signs of a boost to the economy, but given what happened on the stock markets and bonds since that meeting, monetary policy makers can now consider whether the reduction in the rates "as safe" can become a cycle of acceleration.
3. Minutes of the ECB meeting
The ECB will publish the minutes of the July meeting on Thursday. At that meeting, monetary policy remained unchanged, but the ECB adjusted its forecasts, suggesting that rates could fall, laying the groundwork for a downturn in September. The ECB also indicated it could reactivate its quantitative expansion program in the coming months.
Pending the record, investors will know the situation in the euro area manufacturing and services sectors. German PMI data will be the focus of all eyes on the larger euro area economy in the second quarter, fueling fears of a recession.
4. Economic data
The United States' economic agenda is pretty clear this week and the main publications will be those from reports of existing housing sales and (both backed by strong consumer confidence, rising wages and falling interest rates).
Canada will release its reports on, and the manufacturing sector this week, in anticipation of a revised GDP update for the second quarter to be released next week.
5. Results of retailers
Announcing Retail Outcomes Continues This Week With Presentation of Retail Giant's Quarterly Reports Purpose (NYSE 🙂 and a home renovation company Home repository (NYSE: NYSE 🙂 Low (NYSE: LOW), Kohls (NYSE: KSS) and TJX (NYSE: TJX) are some of the other retailers that are also publishing their numbers offering investors an overview of how things are going. consumption.
Last Thursday, industry giant Walmart (NYSE: NYSE) improved its earnings forecasts for the rest of the year and announced more than expected growth in comparable US sales in the second quarter. That, coupled with the optimism of the US retailer report, has helped defuse some fears that the economy is heading into a recession in the context of commercial tensions and slowing growth in other parts of the world.