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Warsh Faces Congress: Inflation Data Looms
12 Jul
Summary
- Fed Chair Kevin Warsh testifies before Congress this week.
- Key inflation reports, CPI and PPI, will be released shortly.
- Economists anticipate some relief in consumer prices.
Federal Reserve Chairman Kevin Warsh will make his first appearance before Congress this week, with key US inflation data set to be released. On Tuesday, the House Financial Services Committee will hear from Warsh shortly after the June consumer price figures are published.
Economists surveyed by Bloomberg anticipate that both the Consumer Price Index (CPI) and Producer Price Index (PPI) reports will indicate a cooling of price surges experienced from March to May. The CPI may even show its first monthly decrease since 2020, largely attributed to declining gasoline prices.
Conversely, the PPI could reveal continuing upstream inflation pressures, influenced by energy shocks from the conflict in the Middle East. The 12-month core inflation gauge, excluding food and energy, is projected to accelerate. Several other Federal Reserve officials, including Governor Christopher Waller and Governor Lisa Cook, are also slated to speak, suggesting a more active communication period from the central bank.
In Canada, the Bank of Canada is widely expected to maintain its key interest rate at 2.25% for the sixth consecutive meeting on Wednesday, balancing trade turmoil against Middle East conflict impacts on inflation.
