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U.S. inflation and retail sales numbers will highlight this week’s economic data as investors continue to digest the implications of Donald Trump’s victory in the U.S. presidential election, The Wall Street Journal reports.
While details of Trump’s policies and implications remain uncertain, his plans for trade tariffs and tax cuts are expected to be inflationary, potentially leading to fewer interest rate cuts by the Federal Reserve than previously expected.
Wednesday’s CPI inflation data for October will be closely watched and could be significant for the interest rate outlook.
Principal Asset Management’s chief global strategist, Seema Shah, says a shift in the Fed’s tone in its statement accompanying the latest rate cut suggests the central bank is less confident that it is winning the battle against inflation.
