The Fed’s “Dovish Upgrade” Dilemma
The Fed’s “Dovish Upgrade” Dilemma : Start a free trial of The Sevens Report.
What’s in Today’s Report:
- The Fed’s “Dovish Upgrade” Dilemma
- Economic Data Takeaways – Goldilocks Narrative at Risk
- Chart – Existing Home Sales Unexpectedly Surge
Futures are tentatively higher this morning as mostly favorable economic data overnight is helping offset a sharp drop in the yuan and subsequent volatility in Chinese markets.
Economically, Japanese Core CPI cooled down to 3.2% y/y vs. (E) 3.3% while the German Ifo Survey came in stronger than expected at 87.8 vs. (E) 86.0. U.K Retail Sales, meanwhile, were flat vs. (E) -0.5% in February after a 3.6% rise in January.
There are no notable economic reports today, but Fed Chair Powell will provide opening remarks and participate in the “Fed Listens” event that begins at 9:00 a.m. ET covering the economy’s transition to the post-pandemic environment. The Fed’s Jefferson and Bowman will also partake in the live discussion.
Bottom line, focus will return to the Fed today, and anything officials say that challenges the idea of three rate cuts in 2024, amid a stronger economy will likely spur some profit taking after this week’s robust post-Fed decision rally.
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