The US economic calendar is brimming with activity this week, with the Federal Reserve reacting to rising PCE, PPI, and CPI inflation data.

Moreover, the central bank’s decision and upcoming economic data releases will provide insights into the inflation battle and the broader US economic trajectory, shaping market sentiment for the months ahead.

Additionally, a raft of earnings reports from more than 20% of the SP 500 will be coming in this week.

Economic Events to Watch

All eyes are on Federal Reserve chair Jerome Powell who kicks off a two-day meeting on Tuesday. Federal Open Market Committee policymakers are expected to keep rates at 5.25% to 5.5% when it concludes on Wednesday.

Interest rates in the US have remained unchanged since last July as inflation remains stubbornly high, above the Fed’s 2% target.

Powell will hold his usual press conference on Wednesday to discuss the details of the decision and the current frustrating inflation pressures.

Moreover, last week’s GDP report showed slow economic growth but higher inflation, which spooked markets at the time.

“Just about every major headwind is converging this week,” commented macroeconomic outlet the Kobeissi Letter.

This week is going to be absolutely wild:

The Fed will react for the FIRST time to rising PCE, PPI, and CPI inflation data.

This includes Fed Chair Powell’s QA after the first 2 month increase in inflation since September 2023.

Meanwhile, over 20% of the SP 500 will be…

As for economic data, Friday will see the release of the April jobs report which is expected to show unemployment at 3.8%. However, this is in line with the expectations, so no major surprises are anticipated there.

Consumer confidence, ISM manufacturing, and payroll reports will also be released this week.

Several major companies, including Apple, Amazon, AMD, and MasterCard, will release their quarterly earnings reports this week, adding to the market volatility.

Crypto Market Outlook

Digital asset markets have been relatively inactive over the weekend following a 4.4% decline since the same time last week.

Total capitalization has slightly declined to $2.4 trillion, with minor trading volumes in Asia on Monday morning.

Bitcoin has dipped 2% on the day in a fall to under $62,000, but it remains within the sideways channel it formed at the end of February.

Ethereum prices hit a two-week high over the weekend of $3,342 but the asset had started to retreat Monday morning, dropping by 3% to $3,200.

The altcoins were a sea of red in what is potentially shaping up to be a volatile week for crypto markets, which could see larger losses if rates remain unchanged.