What’s in Today’s Report:
- Fed Week – Why This is the Most Important Fed Decision of the Year
- Weekly Market Preview – Will the Fed Meet Incredibly Dovish Expectations?
- Weekly Economic Cheat Sheet – One of the Busiest Weeks of the Year (Jobs Report, Inflation Data, Global PMIs)
Futures are little changed following a quiet weekend as all eyes now turn to the Fed decision on Wednesday.
Former Fed Chair Yellen endorsed a rate cut over the weekend, but did not advocate for sustained easing. And, this gets right to the heart of this market. We know the Fed will cut 25 bps this week, but we don’t know if they’ll signal the start of a sustained easing campaign (i.e. 75-100 bps of cuts by year-end) and that’s something the market has already aggressively priced in at these levels.
Economic data was sparse over the weekend although Japanese Retail Sales (0.3% vs. (E) 0.1%) beat estimates.
There was no notable U.S.-China trade news over the weekend and expectations are low for any actual progress at the talks this week.
Today there are no notable economic reports nor any important central bank speak, so focus will remain on earnings (this is the last important week of earnings) and on any U.S.-China trade headlines (although none are expected).