The euro surged against the dollar last week as the release of the account of the European Central Bank April meeting showed concern over inflation had tipped dovish members of the central bank into supporting a quarter percentage point rate hike as soon as July
Concerns are now growing that the Fed and other central banks have fallen behind in curbing inflation and will need to be ever more aggressive in tightening policy. The ongoing war in Ukraine, precipitated by the Russian invasion on Feb. 24, is also darkening the outlook for commodity price-driven inflation.
The Fed chief said the U.S. central bank was prepared to stay the course on rate hikes until it was clear that inflation was abatin
In the upcoming week, the minutes of the FOMC meeting due Wednesday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.
In the last meeting, the Fed 50 basis point hike was the largest since 2000 as policymakers urgently tried to tamp down inflation. But Chair Jerome Powell told reporters afterward that Fed members are not actively considering 75-bp moves in the future.
Additionally, the economic calendar features reports on personal income and spending on Friday.
The report also contains the Fed primary gauge of inflation, the core personal consumption expenditures price index.
Moreover, keep your eye on figures for first quarter GDP, which are expected to be revised slightly higher.
23 May 22 (Mon)