After a two-month hiatus, the Federal Reserve will convene in Washington this week for a new round of policy deliberations. The September meeting will not only convey the Fed’s outlook on monetary policy, it will also provide a revised economic forecast for the world’s largest economy.
The Federal Reserve has raised interest rates twice this year and three times since last December. Many analysts believe the central bank is still on track to raise interest rates one more time this year. However, the Fed’s timetable for normalizing policy will depend largely on economic data, principally inflation.
A steady stream of market-moving data releases will also make its way through the financial markets over the next five days. Reports on housing, inflation expectations and the broader economy will be in the headlines. These reports will trickle down to the financial markets, influencing everything from stocks to currencies.
U.S. economic data headlined the market last week, as investors weighed headline GDP and inflation figures. To compare this week’s outlook with the previous version, click here.
