The US economy is facing its 'two biggest issues' in one day. What to know
CAZ Investments Chief Investment Officer Christopher Zook weighs in on the Fed's handling of the economy as rate cut expectations plummet, Japan's Yen and tech earnings.
Wall Street is bracing for a rare double-header on Wednesday, with fresh inflation data slated for release in the morning and the Federal Reserve expected to announce its interest rate decision in the afternoon.
«It’s all about Wednesday, with the CPI report in the morning and the FOMC meeting statement in the afternoon,» said David Donabedian, chief investment officer at CIBC Private Wealth U.S. «This puts the two biggest issues for the market in one day: inflation and monetary policy.»
Investors will get a chance to see just how hot inflation ran in May, hours before the Fed concludes its two-day meeting and releases a fresh set of economic projections that will reveal where policymakers see interest rates headed this year.
The CPI report and the Fed's policy-setting meeting have fallen on the same day just seven times since 2014, according to Bank of America. Here's what to expect from the major events that will shed light on the status of the U.S. economy and that risk rattling stock markets.
FED'S FIGHT AGAINST INFLATION IS WEIGHING ON MIDDLE-CLASS AMERICANS
Economists expect the consumer price index, which measures a range of goods that includes gasoline, health care, groceries and rent, to show that prices rose 3.4% in May – unchanged from the previous month.
On a monthly basis, inflation is seen rising 0.1%, down from the 0.3% figure recorded in April.
«That will be the 12th straight month that the CPI has been meandering lazily between 3.7% and 3.1%,» said Robert Frick, corporate economist at the Navy Federal Credit Union. «Several times a
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