BlockBeats reported that the latest economic data in the United States has led to a clear divergence in market expectations regarding the possibility of the Federal Reserve cutting interest rates soon.
While retail sales recorded strong growth over the past week, supported by rising auto sales and increased online spending, consumer confidence unexpectedly declined for the first time since April, coinciding with rising inflation expectations.
The previous data for the Consumer Price Index (CPI) for July and the Producer Price Index (PPI) also reflected a mixed picture, as inflation continued in the services sector, while the Producer Price Index rose to its highest monthly level in three years, amid the impact of tariffs imposed by U.S. President Donald Trump. This situation has heightened divisions within the Federal Reserve over a potential interest rate cut in September.
This week's economic agenda carries a series of important events; most notably, the speech by Federal Reserve Governor Waller at a seminar on blockchain in Wyoming on Wednesday evening, followed by the release of the monetary policy meeting minutes on Thursday, and then a speech from Atlanta Fed President and FOMC member Raphael Bostic regarding economic outlooks. On the same day, initial unemployment claims data, the Philadelphia industrial index, along with the manufacturing and services Purchasing Managers' Indices for August will also be released.
Investors are awaiting the end of the week with a speech from Federal Reserve Chairman Jerome Powell at the annual conference of central bank governors in Jackson Hole on Friday evening, which may contain critical signals regarding the future of monetary policy.
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