Weekly Economic Review
Waiting for fresh US inflation data:
- Important inflation data is expected this week, specifically the Personal Consumption Expenditure (PCE) price index, the Federal Reserve's (Fed) preferred inflation gauge.
- The data will be released on Friday and will be key in determining the future direction of interest rates.
Implications of the Fed minutes:
- Minutes from the Fed's last meeting and comments from policymakers suggest doubts about achieving the 2% inflation target.
- Markets are bracing for the possibility of higher and longer-term interest rates.
European Central Bank (ECB):
- The ECB may cut interest rates sooner than other major economies, as the ECB's chief economist suggested in an interview with the Financial Times.