Last week, U.S. Federal Reserve Chair Jerome Powell said that an aggressive interest rate hike could lead to an economic contraction and called a soft landing very challenging in his testimony to the Senate.
Fed Chair Jerome Powell warned in a testimony on Capitol Hill that while it does not intend to cause a wider slowdown, it's certainly a possibility despite his confidence that the U.S. economy will be able to withstand a sharp rise in borrowing costs.
On Thursday, Powell added that the Fed has an unconditional commitment to fighting inflation.
Recession fears over tightening monetary policy lingered in the state. U.S. manufacturing purchasing managers index (PMI) released on Thursday was 52.4 in June, lower than the 56 expected
In the upcoming week, the ECB will hold its annual forum in Portugal, where ECB President Lagarde, along with Fed Chair Powell and BoE Governor Bailey will appear at a panel discussion on Wednesday.
The US economic calendar also features a report on personal consumption expenditures price index, durable goods orders, consumer confidence as well as manufacturing surveys
Moreover, the Eurozone is to publish consumer price inflation data for June on Friday, which is expected to hit a fresh record high of 8.3% year-over-year as energy and food costs continue to soar.
27 Jun 22 (Mon)