Today, Core PPI at 8:30 am and Fed Chair Warsh’s testimony at 2:00 pm headline a critical session for inflation outlooks. Tomorrow at 8:30 am, high-volatility Retail Sales data and jobless claims will test consumer resilience amid recent recession fears. On Friday at 10:00 am, Michigan Consumer Sentiment offers key inflation expectation metrics. Expect heightened volatility during Warsh’s remarks as markets gauge the terminal rate path.
Traders should monitor the 2:00 pm testimony for hawkish shifts that could strengthen the USD. Watch tomorrow's retail data for signs of consumer exhaustion; a miss may trigger defensive rotations into bonds.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.