US
Many economists believed that the Fed would increase the pace of rate increases as disinflation trends were deteriorating due to a strong core services inflation reading, tight labor market conditions, and a week ago, many economists thought so. However, the impact of the first eight rate increases is being changed by the banking crisis.
Nomura analysts are calling for a rate reduction, while investors prefer a hold or a quarter-point rate increase. What happens in the wider financial crisis leading up to the FOMC decision will have an impact on how policymakers place their rates vote.
It will be a busy week for economic data releases, in addition to the FOMC’s decision. Expect a slight rebound in existing home sales data on Tuesday. Thursday’s release will include initial jobless claims and the Chicago Fed national activity indicator. Also, new home sales data will be available. On Friday we get the first look at February’s durable goods data and the flash PMIs.
Earnings season winds down with key results from Accenture, China Mobile, China Pacific Insurance Group, China Petroleum & Chemical, China Shenhua Energy, China Telecom, General Mills, Nike, RWE, Tencent, and…
