Global financial markets are closely watching U.S. Federal Reserve Chair Jerome Powell today, as he prepares to deliver a much-anticipated speech at the Federal Reserve Board’s International Finance Division 75th Anniversary Conference at 1 p.m. The live stream will be available on the official US Fed website.
Powell’s remarks come at a time of high economic sensitivity, with investors hoping for clarity on interest rates, inflation, and the Fed’s monetary policy path. His comments are expected to influence market direction as traders look for hints about possible interest rate cuts.
Just last week, Powell met with former U.S. President Donald Trump at the White House. According to Powell’s office, the discussion revolved around growth, employment, and inflation. The timing of today’s speech following that high-profile meeting adds more weight to what Powell might reveal about the Federal Reserve’s stance.
Though the April PCE inflation data was in line with expectations and consumer spending remains strong, Fed officials, including Governor Christopher Waller, have hinted at possible rate cuts later this year. Waller stated that, “If inflation trends remain steady, tariffs stabilize, and the labor market holds strong, I’d support ‘good news’ rate cuts this year.”
The next major policy decision is expected during the upcoming FOMC meeting scheduled for June 17–18. However, before that, markets are eyeing the release of May’s CPI data on June 11 for further signals.
In Europe, the European Central Bank is expected to cut interest rates by 0.25% on Thursday, according to analysts. Meanwhile, China’s May PMI data for manufacturing and services expected midweek will give further insight into global demand recovery.
U.S. employment data for May, due this Friday, also has the potential to move markets. This week will see limited quarterly earnings announcements, with Broadcom’s results on Thursday evening among the few highlights.
On Monday, U.S. stock futures dipped slightly as investors awaited fresh triggers. This comes after a strong May, where the S&P 500 gained 6.15%, the Dow rose 3.94%, and the Nasdaq surged 9.56%. Despite trade tensions and tariff uncertainties, robust economic data and strong corporate earnings boosted investor confidence last month.
However, trade- legal developments added uncertainty. A federal judge overturned Trump’s reciprocal tariffs, only for an appeals court to later reinstate them, increasing market volatility.
Adding to the intrigue, Trump’s economic adviser Kevin Hassett said that trade negotiations between Trump and China’s President Xi Jinping could resume this week. This comes after Trump accused China of breaching a recent trade agreement.
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