According to CryptoPotato, the US economic calendar is packed this week with the Federal Reserve's response to rising PCE, PPI, and CPI inflation data. The central bank's decision and forthcoming economic data releases will offer insights into the inflation struggle and the broader US economic path, influencing market sentiment for the upcoming months. Furthermore, over 20% of the S&P 500 companies are expected to release their earnings reports this week.
Federal Reserve chair Jerome Powell is set to begin a two-day meeting on Tuesday, with all eyes on him. The Federal Open Market Committee policymakers are anticipated to maintain rates between 5.25% and 5.5% when the meeting concludes on Wednesday. US interest rates have been steady since last July due to persistently high inflation, exceeding the Fed's 2% target. Powell will conduct his regular press conference on Wednesday to discuss the decision's details and the ongoing inflation pressures.
Last week's GDP report indicated slow economic growth but increased inflation, which unsettled markets. The Kobeissi Letter, a macroeconomic outlet, noted that this week would be extremely volatile as the Fed responds for the first time to rising PCE, PPI, and CPI inflation data. This includes Powell's Q&A following the first two-month inflation increase since September 2023.
In terms of economic data, the April jobs report is due to be released on Friday, with unemployment expected to be at 3.8%. However, this aligns with expectations, so no significant surprises are anticipated. Consumer confidence, ISM manufacturing, and payroll reports will also be released this week. Major companies such as Apple, Amazon, AMD, and MasterCard will release their quarterly earnings reports this week, contributing to market volatility.
The digital asset markets have been relatively quiet over the weekend, following a 4.4% decline from the same time last week. Total capitalization has slightly decreased to $2.4 trillion, with minor trading volumes in Asia on Monday morning. Bitcoin has dropped 2% on the day to under $62,000, but it remains within the sideways channel it formed at the end of February. Ethereum prices reached a two-week high over the weekend of $3,342, but the asset began to pull back Monday morning, falling by 3% to $3,200. The altcoins were a sea of red in what could be a volatile week for crypto markets, which could see larger losses if rates remain unchanged.