U.S. stock futures are pointing to a higher open to start the week and global shares in Asia and Europe have advanced on hopes that President Trump will deliver some tax cuts that can provide fiscal stimulus for the world’s largest economy during a period of time when U.S. monetary policy is tightening and Fed members have projected 3 interest rate hikes in 2017.
Fed Chair Janet Yellen could give the market more clues about U.S. monetary policy this week when she speaks on Tuesday before the Committee on Banking, Housing, and Urban Affairs in the U.S. Senate and on Wednesday addresses the Committee on Financial Services with the U.S. House of Representatives.
The next Federal Reserve meeting on March 14-15 is considered to be a “live” meeting which means it is possible that members in the Federal Reserve could decide to hike rates and contains a press conference with Fed Chairwoman Janet Yellen combined with updated economic projections from Fed members.
According to CME’s Fed Watcher tool, the probability of a .25 point basis move with the federal funds to .75-100 stands at just 13.3 percent for the Fed’s March policy meeting.
The Week Ahead
Investors will have some good spending data to review this week with January retail sales coming into focus on Wednesday combined with some inflation data due out on Tuesday and Wednesday.
PPI for January is due on Tuesday and CPI will come into focus on Wednesday.
Economists from briefing.com expect January retail sales due on Wednesday to rise 0.1 percent in its consensus estimate after increasing 0.6 percent in December.
Industrial Production and Capacity Utilization for January is also reported on Wednesday and Business Inventories for December is disclosed.
Housing Starts and Building Permits for January is due on Thursday alongside weekly continuing and initial claims.
Leading indicators for January is reported on Friday.
Johnathan is a Seattle based writer focusing on Finance, Politics, and Tech