As we step into a new week, several crucial economic events are set to shape market sentiment and provide insights into the state of the U.S. economy. From Federal Reserve testimony to key economic data releases, here’s what to keep an eye on in the coming days.

Tuesday: Powell’s Senate Testimony

Federal Reserve Chair Jerome Powell will testify before the Senate, offering updates on monetary policy, inflation, and economic conditions. Investors and policymakers will closely analyze his remarks for signals about potential interest rate adjustments and the Fed’s outlook on inflation control. Any hints of a dovish or hawkish stance could drive market volatility.

Wednesday: Powell’s House Testimony & US CPI Data

Following his Senate appearance, Powell will continue his testimony before the House. Markets will be on alert for any further clarifications or shifts in tone.

Additionally, the latest Consumer Price Index (CPI) report will be released, providing a fresh update on inflation trends. With inflation remaining a top concern, this data will be critical in determining whether price pressures are easing or persisting. A hotter-than-expected CPI reading could reinforce the case for maintaining higher interest rates.

Thursday: US Jobless Claims

The weekly jobless claims report will offer insight into the labor market’s health. A rising number of claims could indicate softening employment conditions, while a lower-than-expected figure would reinforce labor market resilience. Given the Fed’s dual mandate of price stability and full employment, this data remains a key piece of the economic puzzle.

Friday: US Retail Sales

The week will wrap up with the release of U.S. retail sales data, a crucial indicator of consumer spending. Since consumer spending drives a significant portion of economic growth, this report will reveal whether households are continuing to spend despite inflationary pressures and higher interest rates. Strong retail sales could suggest economic momentum, while weak numbers may signal slowing demand.

This week presents a packed economic calendar that could shape market sentiment and influence Federal Reserve policy decisions. Investors, economists, and policymakers will be watching closely as these events unfold, with each data point providing a clearer picture of where the economy is headed next. Stay tuned for updates and analysis as the numbers come in.