US data - Now things are getting exciting -- FED under pressure?

Economic data

We can expect important economic data from the USA this afternoon and tomorrow. This data is of course of enormous importance for the FED with regard to interest rate policy and is likely to cause high volatility on the stock markets.

On the one hand, consumer prices await us at 1430

CPI

What are consumer prices?

The consumer price index (CPI) is calculated using a basket of goods and services that an average household in the USA buys. This produces the consumer price index, which is considered a key indicator for consumer behavior and inflation. Since last year, the value has fluctuated around 3.3%, signaling that the increased interest rates are having an effect and that inflation is not increasing any further.

Tomorrow, in addition to the consumer climate in Michigan, we will also see producer prices, which will also be reported at 2:30 p.m.

EPI

What are the producer prices?

The Producer Price Index (PPI) measures the products and services produced in the United States and sold domestically in terms of changes in transaction prices. The PPI is an output index - it measures price changes from the seller's perspective and is therefore also used to forecast inflation.

It is clear that these have been increasing significantly since last year.

While economists' estimates do not expect any changes in the EPI, a decline is expected in the CPI. If both indices fall, this is another indicator that an interest rate cut in the USA is imminent and may provide relief on the stock markets. But it is also a fact that these data are just two of many that the FED must take into account.

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