Next Week's Macro Outlook: Trump's 'Self-Inflicted Wound' Forces the Fed to Cut Rates, Super Central Bank Week Approaches
Next week, global investors will welcome a 'Super Central Bank Week,' with the Bank of Japan, the Federal Reserve, the Swiss National Bank, the Swedish Riksbank, and the Bank of England all set to announce their interest rate decisions. Here are the key points the market will focus on in the new week:
Monday 20:30, U.S. February Retail Sales MoM, March New York Fed Manufacturing Index
Thursday 02:00, Federal Reserve FOMC releases interest rate decision and economic projections summary
Thursday 02:30, Federal Reserve Chair Powell holds a monetary policy press conference
Thursday 20:30, U.S. Initial Jobless Claims for the week ending March 15, U.S. Q4 Current Account, March Philadelphia Fed Manufacturing Index
Friday 21:05, FOMC permanent voter, New York Fed President Williams speaks
The most important event next week is undoubtedly the Federal Reserve's interest rate decision on Thursday. In addition to the interest rate decision, statement, and press conference, the committee will also release updated economic forecasts, including a new 'dot plot.' As the market generally expects no action before June, the focus may firmly be on the dot plot. Some analysts predict that this so-called 'economic panic' is a 'self-inflicted wound' by the Trump administration, attempting to pressure the Federal Reserve to lower rates quickly. Trump is deliberately creating an economic recession with the aim of forcing the Federal Reserve to cut rates, thereby reducing the U.S. government's interest expenses.
