HOW WILL THE EFFECTS OF US INFLATION DATA BE?
Crypto markets remained stagnant over the weekend following last week's decline, dropping the total market value to $2.38 trillion. This week, volatility is expected in the markets with the speeches of Federal Reserve officials and the release of critical inflation data.
### Economic Calendar
**Tuesday:**
- **Producer Price Index (PPI):** The PPI report, which measures production costs and input prices that will be reflected in retail prices, will be published. PPI is considered one of the leading indicators of inflation and provides signals for the following month's Consumer Price Index (CPI).
**Important Events:**
1. **April PPI data** – Tuesday
2. **Fed Chairman Jerome Powell's speech** – Tuesday
3. **April CPI data** – Wednesday
4. **April retail sales data** – Wednesday
5. **Philadelphia Fed manufacturing data** – Thursday
6. **Speeches from a total of 12 Fed officials this week**
**Wednesday:**
- **Core CPI:** CPI, one of the two main indicators of inflation, directly affects price trends in the economy, consumer spending and the general business environment. This data plays an important role in determining the Federal Reserve's interest rate policies. "If CPI inflation rises again this week, it will be the third consecutive monthly increase," the Kobeissi Letter states.
### Fed and Market Expectations
This week, speeches by a total of 12 Federal Reserve officials, including Fed Chairman Jerome Powell, will take place. Most U.S. CEOs expect the Fed to cut interest rates just once this year, according to the Conference Board's CEO expectations survey. While 31% of the 136 CEOs participating in the survey do not expect an interest rate cut this year, 26% predict two interest rate cuts. The Kobeissi Letter states that markets expect two interest rate cuts that will begin in September.
