A key measure of U.S. inflation set to be released Wednesday is anticipated to have increased further in December as consensus for Core Inflation Rate YoY stands at 5.4% vs. a previous of 4.9%, putting additional pressure on the central bank to tighten policy, sparking further volatility in equity markets as rotation plays accelerate. Fed Powell, in his Senate confirmation hearing yesterday, commented that the central bank will prevent higher inflation from becoming entrenched as investors await further clarification on rate hike frequency and timing as four fed hikes may just be the start.

Here are some key events this week:

  • Fed Chair Jerome Powell’s confirmation hearing in the Senate Banking Committee on Tuesday
  • Key measure of U.S. inflation set to be released on Wednesday
  • St. Louis Fed President James Bullard speaks on Tuesday
  • EIA crude oil inventory report on Wednesday
  • China PPI, CPI on Wednesday
  • U.S. CPI, Fed Beige Book on Wednesday
  • U.S. initial jobless claims, PPI on Thursday
  • U.S. Senate Banking Committee hearing for Lael Brainard, nominated as Fed vice-chair on Thursday
  • Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans speak on Thursday
  • Bank of Korea policy decision and briefing on Friday
  • Wells Fargo, Citigroup, JPMorgan due to report earnings on Friday
  • U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday
  • New York Fed President John Williams speaks on Friday.

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