US investors appear to be sitting on their hands this morning, reluctant to make any significant commitments ahead of this afternoons Fed News. The central bank’s monetary policy decision, statement, and member projections are due at 2:00 pm EDT, followed by Chair Powell’s press conference at 2:30 pm EDT.
In the wake of mixed inflation, employment and retail sales numbers out of the US over the last couple of weeks, plus previous comments from FOMC members, the Fed appears likely to continue its current stimulus program indefinitely. Investors may look to the statement and projections (inflation, GDP, unemployment and the fed funds rate dot plot) for any hints as to whether inflation is a concern and if there are any changes in tone.
Bank of Canada Governor Macklem is scheduled to speak at 6:30 pm EDT, which investors may look to for insights about the hot Canadian housing markets, the impact of recent lockdowns, and the prospects for a summer rebound as provinces start to reopen. Inflation may also be a topic of interest after Canadian consumer prices increased more than expected in May (3.6% vs street 3.5% and previous 3.4%).
On the political side, US President Biden and Russian President Putin are holding a summit meeting but unless there is a major surprise, for investors, this meeting is likely to be overshadowed by the central bank news.
A few earnings reports of note came out overnight. Highlights include: Oracle ($1.54 vs street $1.31) and furniture maket La-Z-Boy ($0.87 vs street $0.74) beating expectations.
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