High-impact events loom: Thursday at 8:30 AM EST brings GDP data, crucial after recent mediocre growth and tariff uncertainty. Friday at 8:30 AM EST features critical Core PCE inflation data, the Fed's preferred gauge, with expectations for acceleration potentially challenging September rate cut bets. President Trump's ongoing pressure on the Fed for lower rates adds political volatility. Next Tuesday at 10:00 AM EST, ISM Manufacturing PMI offers insight into a softening sector.
Traders should brace for significant volatility around Thursday's GDP and Friday's PCE releases, as inflation data will heavily influence September rate cut probabilities. Watch for any signs of further economic deceleration or persistent inflation, which could dictate Fed policy shifts amid political pressures.
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.