Take Five: An inflationary dilemma
(Reuters) — The moment investors have been waiting for seems to finally have arrived, as major central banks have indicated they are nearing the end of their string of interest-rate rises.
The week ahead brings more evidence of how much progress is left for developed-economy policymakers, while in the emerging world, India is set to enter the bond-market big time and a raft of central banks wrestle with a dilemma.
Here's your week ahead in markets from Vidya Ranganathan in Singapore, Lewis Krauskopf in New York and Naomi Rovnick, Karin Strohecker and Amanda Cooper in London.
1PRICE POINTS
The Federal Reserve's preferred inflation gauge lands on Sept. 29, right after the central bank signalled it plans to keep interest rates higher for longer to tame price pressures.
The personal consumption expenditures (PCE) price index rose 3.3% in the 12 months through July. The Fed tracks the PCE price indexes for its 2% inflation target.
In its latest decision on Wednesday, the Fed kept interest rates steady, but projected monetary policy will remain significantly tighter through 2024 than previously expected.
Investors will also be watching events in Washington, where U.S. lawmakers are haggling over a spending bill with a Sept. 30 deadline to avert a potential government shutdown that could rattle markets.
2PAUSE AND EFFECT
The European Central Bank has not called time on its battle against inflation, but markets are laser-focused on when it might. That means euro zone consumer prices data on Sept. 29 has the potential to move markets significantly.
Headline inflation in the euro area remains far above the ECB's 2% target but has been moving in the right direction.
Consumer prices increased by 5.2% year on year
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