Macro Data and Central Bank Decisions: FOMC Done, BOJ/ECB Next
Key Questions
What was the outcome of the recent FOMC decision?
The FOMC delivered a hawkish surprise on June 17 with Warsh's debut marking a key turning point. Markets are now pricing in potential rate hikes as yields surge.
What upcoming central bank decisions matter next?
BOJ decision on June 18 and ECB decision follow, alongside Japan inflation data. Retail sales and housing data releases are also due.
How do inflation readings affect the outlook?
CPI and PPI remain elevated while ISM Services inflation stays above 70. NFP at 172K and ADP at 122K show mixed labor signals.
Why was a weekend preview recommending de-risking?
Sticky inflation and hawkish Fed signals prompted caution ahead of BOJ and ECB meetings. ISM manufacturing at 54% and Iran-related comments added headwinds.
What data points indicate persistent inflation pressures?
Elevated CPI, PPI, and services inflation above 70 point to ongoing pressures. ISM manufacturing comments cited Iran war as a notable headwind.
FOMC delivered hawkish surprise on June 17. Next data: retail sales, housing data, BOJ decision (June 18), ECB decision, Japan inflation. CPI and PPI remain elevated. NFP 172K, ADP 122K. ISM Manufacturing 54%, Services inflation above 70. Weekend preview recommended de-risk. Warsh's debut now a key turning point.