Key Economic Indicators Ahead of Fed Meeting

This week is pivotal for U.S. markets as key inflation data and employment figures are set to be released ahead of the Federal Reserve's interest rate decision. The Consumer Price Index (CPI) and Producer Price Index (PPI) will be closely watched, along with earnings reports from major companies such as FedEx and GameStop. The Fed is anticipated to announce its first rate cut in over four years, potentially by 25 basis points, although a larger cut is also considered possible depending on job market data. Meanwhile, currency volatility is expected to rise with the ISM manufacturing index indicating a modest improvement but remaining in contraction territory. Recent Personal Consumption Expenditures (PCE) data showed inflation levels steady, supporting the Fed’s potential rate cut. Overall, the market is preparing for a complex response to these economic indicators, which may shape future interest rate movements.