Information filtered by Randi Greenwood.
U.S. Treasury Secretary Yellen said last week that regional bank failures indicated that the U.S. economy faced certain systemic risks. The committee of U.S. financial regulators she leads has voted in favor of a new rule that would reverse a previous Trump administration decision to loosen regulations on nonbanks that could threaten financial stability.
On the data front, this week the US will release the first reading of first-quarter GDP. While U.S. consumers performed well in January, falling spending in the next two months put the economy's momentum at the end of the first quarter to the test, while instability from banking turmoil will also weigh on output at the end of the quarter. The Fed's latest Beige Book said economic activity had "little changed" in recent weeks. The market expects that the U.S. economic growth rate in the first quarter of this year will fall below 2% from the previous 2.6%.
The PCE indicator in March is equally important. As the inflation data valued by the Federal Reserve, as supply chain bottlenecks ease and demand cools down, agencies predict that the year-on-year growth rate of PCE last month will further drop from the previous 5% to 4.5%. The latest employment cost index (ECI ) will also help the Fed assess the outlook for inflation. In addition, indicators such as the US Case-Shiller housing price index, the monthly rate of new home sales, the monthly rate of durable goods orders, and the number of initial jobless claims are also worthy of attention.