According to PANews on May 24, Moody's downgrade of the U.S. sovereign credit rating and Trump's multi-trillion-dollar 'beautiful big plan' has once again sparked a wave of selling off dollar assets in the past week. On Friday, Trump's threat to tax the EU and Apple further triggered a 'triple kill' of U.S. stocks, bonds, and currency. The dollar has fallen to a three-week low, marking the largest weekly decline since the announcement of reciprocal tariff plans in early April. Below are the key points the market will focus on in the new week.
On Monday at 2:40, Federal Reserve Chairman Powell will give a commencement address at Princeton University's graduation ceremony.
On Tuesday at 16:00, 2026 FOMC voting member and Minneapolis Fed President Kashkari will participate in a policy panel discussion at the Bank of Japan's Financial Research Institute and deliver a speech.
On Wednesday at 8:00, FOMC permanent voting member and New York Fed President Williams will participate in a panel discussion at the Bank of Japan's Financial Research Institute.
On Wednesday at 16:00, 2026 FOMC voting member and Minneapolis Fed President Kashkari will participate in a discussion and Q&A at Keio University.
On Thursday at 2:00, the Federal Reserve will release the minutes of the May monetary policy meeting.
On Thursday at 20:30, 2027 FOMC voting member and Richmond Fed President Barkin will participate in a fireside chat.
On Thursday at 20:30, the number of initial unemployment claims in the U.S. for the week ending May 24, and the revised annualized quarterly rate of U.S. GDP for the first quarter.
On Thursday at 22:40, 2025 FOMC voting member and Chicago Fed President Goolsbee will participate in a Q&A.
On Friday at 4:00, 2027 FOMC voting member and San Francisco Fed President Daly will participate in an economic-related fireside chat with the Oakland Rotary Club.
On Friday at 8:25, 2026 FOMC voting member and Dallas Fed President Logan will deliver opening remarks and participate in a dialogue at an event.
On Friday at 20:30, U.S. April core PCE price index year-on-year and month-on-month, and U.S. April personal spending month-on-month.
Next Friday, the first U.S. Personal Consumption Expenditures (PCE) inflation and consumption data since Trump's 'Liberation Day' will be released. Core PCE is the Federal Reserve's preferred inflation measure, which dropped significantly in March from 3.0% to 2.6% year-on-year. According to the Cleveland Fed's Nowcast model, the year-on-year growth rate of core PCE is expected to remain unchanged in April, but overall PCE is expected to slightly slow down to 2.2%.
It is difficult to see the Federal Reserve making a more decisive shift in interest rate policy without changes in core inflation. In fact, most of the inflationary pressures from tariffs take time to show up in the data, so it may take a few months to understand the impact of Trump's tariffs on price growth.