The key economic releases this week are CPI, retail sales, and industrial production on Wednesday. In addition, there are several scheduled speaking engagements from Fed officials this week, including Chair Yellen’s semi-annual Monetary Policy Report to Congress on Tuesday and Wednesday (Humphrey-Hawkins).
As discussed yesterday, the biggest event this week takes place on Tuesday when Fed-Chair Yellen is due to deliver her semi-annual congressional testimony before the Senate. She will then speak before the House Financial Services Committee on Wednesday. Even though we’re unlikely to hear much new from Yellen, many banks believe she will use it as an opportunity to emphasize that the economy is reaching Congress’ legislated mandates of full employment and price stability. Some banks, most notably BofA, expect her to boost March rate hike odds closer to 50% to make the meeting “live.” Yellen will also likely address Fed balance sheet strategy in broad terms as it does not appear that the FOMC has formed a consensus around the details.
Wednesday’s CPI report will also be closely watched for hints on ongoing inflation trends and may spark further gains in the dollar.
This post was published at Zero Hedge on Feb 13, 2017.
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