Global central banks are proactive in tightening monetary policies to tame soaring inflation. The U.S. Federal Reserve announced on Wednesday its biggest interest rate hike since 1994
The Federal Open Market Committee raised its benchmark rate to a range of 1.5% to 1.75% from 0.75% to 1% previously. That was more hawkish than economists expectations for a 0.5% rate hike.
Last week, U.S. producer prices increased solidly in May as the cost of gasoline surged.
In the upcoming week, focus on Powell testimony. Powell is due to testify before Congress in hearings on Wednesday and Thursday and is expected to reiterate the Fed’s commitment to curbing inflation.
Market participants fear that the Fed’s aggressive rate hike path risks pushing the economy into recession
Additionally, ECB President Christine Lagarde is to testify before the European Parliament in Brussels on Monday
The US economic calendar also features a report on existing home sales, new home sales, initial jobless claims as well as manufacturing and service sector PMI numbers
20 Jun 22 (Mon)