The release of US CPI data for the month of March will be a major event this week. The previous month’s US inflation figures are scheduled to be released on April 12, 2023. Annual inflation dipped to 6% in February from 6.4% in January. Markets anticipate that March inflation will decrease more, as will the core inflation. The US inflation index data, which will be announced this week on Wednesday, April 12 at 8:30 a.m. Eastern Time, will be one of the key drivers for the US Fed to decide on rate action later in the May FOMC meeting.
The Consumer Price Index (CPI) report due this week will be critical in determining how far the Fed raises interest rates. Markets believe the Fed will choose to raise rates at least one more time in 2023 before taking a break. The Fed’s decision to pivot and begin cutting rates in 2023 will be determined by incoming macroeconomic data in the second half of the year, as well as how severe the lag effect of rate hikes has been on the US economy.
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FOMC minutes from the March 21-22 meeting will also be issued this week. On April 12, at 2 P.M. Eastern Time, the Fed minutes will be rolled out for the market investors to peep into the Fed officials’ minds regarding inflation and interest rates, which led to a 25bps rate hike on March 22.
The March 2023 Producer Price Index (PPI) figures are set to be announced on April 13, 2023, at 8:30 a.m. Eastern Time. Over time, the PPI programme tracks the average change in selling prices gained by domestic producers for their output. Producer prices in the United States unexpectedly fell in February, and the January price increase (updated data) was not as large as previously anticipated, providing some promising indicators in the fight against inflation.
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Earnings season has arrived, and some of the largest firms in the United States will shortly release their quarterly results. Along with the profits, margins, revenues, and profit figures, the management guidance will be equally critical for investors to make a forward call.
First Republic Bank and Washington Federal report on April 12, while Progressive Corporation, Fastenal Company, and Delta Air Lines report on April 13. On the last trading day of the week, April 14, bigwigs including UnitedHealth Group Incorporated, JP Morgan Chase, Wells Fargo, BlackRock, and Citigroup Inc. will release their quarterly results.
