High on the agenda this week, Federal Reserve (FED) officials are gearing up for a critical two-day policy meeting, starting on Wednesday.
The eagerly awaited interest rate decision is expected to be announced early Thursday morning where investors will be closely monitoring the outcome of the meeting as central bank policy has important implications for the overall economy and financial markets.
Thursday will feature the reading of preliminary estimates of US second-quarter GDP, a key indicator of economic growth and recovery after the downturn caused by the pandemic.
This GDP estimate will provide valuable insight into the speed of the country's economic recovery and its resilience amid the challenges that still plague it.
The focus on Friday will be on the publication of the Personal Consumption Expenditure Price Index (PCE) as an inflation indicator which is the Federal Reserve's main choice.
Inflation has been a major concern for policymakers and investors, and PCE data will be closely scrutinized for signs of persistent price pressures or indications of temporary factors at play.
Meanwhile, the health of the real estate market will also be monitored with the release of the latest updates on home prices, new home sales, and pending home sales for June.
The housing sector has been a bright spot in the US economic development, but rising prices and supply constraints have raised questions about its sustainability.
The release of these data will be closely watched by investors, economists, and policymakers as they try to understand the trajectory of the United States economy amid ongoing challenges and changing circumstances.
While the Fed is cautious in setting their policy decisions, market players will analyze the cues from these economic indicators to assess possible further actions and the potential impact on financial markets.
This Week's Economic Data Focus
Monday, July 24
Chicago Fed National Activity Index (June)
S&P Global Composite PMI – Flash Estimate (Jul)
Tuesday, July 25
S&P Case-Shiller National Home Price Index (May)
Federal Housing Finance Authority (FHFA) House Price Index (May)
Conference Board (CB) Consumer Confidence Index (Jul)
Richmond Fed Manufacturing Index (July)
Day 1 of July 2023 FOMC Meeting
Wednesday, July 26
New Home Sales (June)
Day 2 of July 2023 FOMC Meeting; Interest Rate Decision and Press Conference
Thursday, July 27
U.S. GDP Growth Rate - Advance Estimate (Q2 2023)
U.S. Goods Trade Balance (June)
Durable Goods Orders (June)
Wholesale Inventories (June)
Retail Inventories Excluding Autos (June)
Kansas City Fed Composite Index (Jul)
Pending Home Sales (June)
Friday, July 28
Personal Income and Spending (June)
Personal Consumption Expenditures (PCE) Price Index (June)
Michigan Consumer Sentiment Index – Final Reading (Jul)
