In the week of 15 – 19 August, global markets will focus on two U.S. economic data in the spotlight. The major one will be Wednesday’s minutes of Fed’s policy meeting in July. Before the minutes, markets will follow U.S. inflation data on Tuesday.
1.FOMC Meeting Minutes
On Wednesday at 2.00PM ET, U.S. Central Bank Federal Reserve will release minutes of its July meeting, and markets will try to catch signals about the timing of rate hikes.
Recall that Fed had left the rates unchanged at 0.25%-0.50% in the meeting of July 27. After this decision, Fed noted a labor market that has “strengthened” and said other indicators were pointing to growth. In its statement, Fed said: “On balance, payrolls and other labor market indicators point to some increase in labor utilization in recent months. Household spending has been growing strongly but business fixed investment has been soft. Inflation has continued to run below the Committee’s 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports…”
2.Consumer Price Index
On Tuesday at 8.30 AM ET, U.S. July inflation will be published. Average estimate of analysts is 0.1%, while core inflation is estimated to rise 0.2%
Recall that monthly inflation in June had been announced as 0.2%, and yearly inflation was 1.0%. In addition, yearly core inflation was 2.3% in June.
Note that inflation is one of the key criteria of Fed’s expected rate hikes.