Following last week's Fed meeting, the ongoing speculation surrounding US monetary policy could once again be an important topic. Investors are likely to hope that the monetary policy headwinds in the US will continue to ease. In addition to an eagerly awaited speech by Fed Chairman Jerome Powell, the focus is likely to be on important US price data on Friday. In any case, investors can expect a veritable marathon of speeches by various Fed representatives.
After Fed rate decision - rate cut fantasies could stay alive
The latest key interest rate decision by the US Federal Reserve (Fed) and the results of the subsequent FOMC press conference with Jerome Powell last Wednesday are likely to continue to occupy investors in the coming trading days. As expected, the US monetary authority lowered interest rates by a quarter of a percentage point. It remains to be seen whether there will be another rate hike on October 29, the penultimate scheduled Fed meeting of the year. According to the CME Group's „Fed Watch Tool“, there is currently a 91.9% chance of a downward correction in interest rates (25 basis points).
Speeches by Fed representatives John Williams (New York/15:45), Tom Barkin (Richmond), Beth Hammack (Cleveland) and Stephen Miran (18:00) are already on today's agenda.
Purchasing managers in focus on Tuesday - Powell speech could decide the weal and woe
Things could get interesting on Tuesday with a speech by Michelle Bowman (15:00) and the publication of various purchasing managers (S&P Global) (15:45). The index for the services, manufacturing and „total“ sectors is expected.
Raphael Bostic of the Atlanta Fed could also send monetary policy hints (16:00)
In the evening, attention should turn to a speech planned by Fed Chairman Jerome Powell (17:35).
Fed representative Mary Daly is expected on Wednesday evening at 10:10 pm.
The US gross domestic product (annualized) should provide important economic indicators on Friday (14:30).
Various US economic data ahead on Thursday - US price data as one of the week's highlights
New data on new orders for durable goods will also be in focus (14:30).
At the same time, the weekly initial claims for US unemployment benefits are also on the agenda.
The core rate for personal consumption expenditure is on the daily agenda on Friday (14:30), which is to be tapped for monetary policy clues.
The final consumer sentiment data from the University of Michigan (16:00) will round off the trading week alongside expected speeches by Michelle Bowman (19:00), Alberto Musalem (19:30) and Raphael Bostic (00:00).
Dow Jones Industrial Average Index
Source: TradingView
