Stock markets remain closed here and abroad on Good Friday, but the holiday brings news that will certainly shake up markets upon reopening. Among them, the dissemination of PCEpreferred inflation data from the Federal Reserve (Fed), and the speech of Jerome Powell.
The president of the North American BC already has in his hands the data on the US consumer spending price index (PCE), which increased 0.3% in February compared to January.
Starting with the good news, the number was below analysts’ forecast of 0.4%. Core PCE, which excludes volatile items such as food and energy, rose 0.3%, in line with projections, according to FactSet.
The bad news is that PCE accelerated from 2.4% to 2.5% year over year, while the core index slowed from 2.9% to 2.8%.
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What now, Powell?
Even on holiday, investors’ attention will now turn to Fed President Jerome Powell. He participates in the event at 12:30 pm (Brasília time).
At the beginning of the year, investors’ expectations were that the North American Central Bank would start cutting interest rates in March.
But with inflation rates above the 2% target and economic data showing a still buoyant economy in the United States, projections for the start of the reduction cycle were moved to June.
Therefore, any statement from Powell soon that causes the market to change this perspective should affect stock exchanges when they reopen on Monday.
You can follow the event (in English) below:
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*With information from Estadão Conteúdo
Tags: Powell Feds important price index data future #U.S interest rates
