Federal Reserve Chairman Kevin Warsh will testify before Congress twice this week, his first time as chair. His testimony coincides with a wave of major bank profits and new inflation data.
The overlap creates one of the most closely watched weeks of the year for markets.
Warsh certificate and inflation data
Wars He appears Before the House Financial Services Committee on Tuesday, July 14, hours after the release of the June CPI report Lands. He then testifies before the Senate Banking Committee on… WednesdayAfter the release of the producer price index.
Both readings will shape how lawmakers interpret his position on interest rates. The certificate comes First Warsh meeting of the Federal Open Market Committee In June, officials indicated an openness to raising interest rates if inflation remained high.
His statements also come after that Economists have reduced the chances of a recession With rising inflation expectations. This combination leaves little room for the Fed to ease policy this year. Warsh inherited this role from his predecessor’s last FOMC meeting, which left him with a difficult inflationary picture and a volatile energy market.
Bank profits test economic health
JPMorgan, Bank of America, Wells Fargo, Goldman Sachs, and Citigroup a report Their earnings Tuesday. The results give investors an early read on loan demand and credit quality.
Net interest margins and loan loss provisions will also attract close attention. These reports come in the wake of the Fed’s liquidation of banks Annual stress test While maintaining healthy capital levels.
The rest of the week’s flurry is something to watch
Morgan Stanley, Johnson & Johnson, ASML, and United Airlines a report Wednesday. Morgan Stanley offers an investment banking view, while ASML’s order book will indicate demand for AI-based chips.
Taiwan Semiconductor, Netflix, UnitedHealth and GE Aerospace followed on Thursday. TSMC’s results carry special weight after a long time Semiconductor stocks outperformed major technology companies. Netflix will experience subscriber growth in the face of a tougher streaming market, and UnitedHealth faces continued scrutiny over medical cost trends.
Thursday also brings retail sales data for June. The reading provides a final check on this week’s consumer health. This comes at a time when markets are weighing inflation risks against growth concerns over a period of time Sector rotation towards defensive names.
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