Upbeat music plays.
[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up an illustration of Fed Chairman Powell]
From Fed Chair Powell’s testimony to Congress, to the U.S. consumer price index, to a large slate of earnings reports, I’m Jeff kleintop with what you need to know about the week ahead.
On Monday, China’s retaliatory tariffs on U.S. goods are scheduled to take effect. While Presidents of both countries are seeing talks, neither seem to be in a rush.
But on Tuesday, Fed Chairman Powell gives his semiannual monetary policy testimony to the Senate Banking Committee and on Wednesday to the House Financial Services Panel. President Trump commended the Federal Reserve for its decision to leave interest rates unchanged in January. The potential for inflation-inducing tariffs is a further reason for the Fed to stay on hold for now.
On Wednesday, we get
[Jeff holds up an illustration of an alarm clock labelled “CPI”]
U.S. CPI inflation data for January with economists expecting inflation to remain at 2.9% from a year ago, the same as in December. With tariffs seemingly already prompting some businesses to raise prices, like U.S. steelmakers, the outlook for inflation remains “somewhat elevated” to quote chairman Powell from his press conference back on January 29th.
On Friday, fourth quarter
[Jeff holds up an illustration of a snail labelled “GDP”]
GDP for the Eurozone is expected to have stalled with the region’s two largest economies, Germany and France, having contracted during the quarter. Economists currently expect a rebound in growth in 2025.
A large slate of companies
[Jeff holds up an illustration of a high jump labelled “Expectations”]
are set to report fourth quarter earnings throughout the week. Guidance on future earnings growth though may be mixed, with warnings similar to Ford’s earnings call last week that highlighted the negative impact of tariffs. Autos are Mexico’s biggest export to the U.S., and Ford is Mexico’s largest producer of those vehicles.
Thanks for watching.
[Jeff holds up sign saying "Thank You"]
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