Critical CPI inflation data drops Friday at 8:30 am, followed by Michigan Consumer Sentiment at 10:00 am. Markets are bracing for the FOMC interest rate decision and updated dot plot projections Wednesday at 2:00 pm, with Powell’s presser at 2:30 pm. Wednesday morning also features high-impact Retail Sales at 8:30 am. With inflation cooling but labor markets softening, these prints will dictate the Fed's easing trajectory. Expect extreme volatility across equities and treasury yields during these windows.
Prepare for sharp reversals following Friday’s CPI print and Wednesday’s Fed announcement. Traders should tighten stops and monitor the 2-year yield for clues on rate cut sizing. Focus on the Fed's economic projections to gauge long-term growth expectations.
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.