Bonds & Stocks
Stocks, bonds and the dollar saw small moves as traders braced for a barrage of economic data and remarks from Federal Reserve speakers that will help shape the outlook for interest rates. The economy is back to the forefront this week, with the Fed’s favored inflation gauge due Thursday expected to show the biggest advance in a year. The core personal consumption expenditures price index is seen highlighting the bumpy path the central bank faces in achieving its 2% target. That means the data should also validate recent Fedspeak underscoring officials are in no rush to ease policy.
Economy
Underlying US inflation probably rose in January by the most in a year, as tracked by the Federal Reserve’s preferred metric, highlighting the long and bumpy path to taming price pressures. The core personal consumption expenditures price index, which excludes food and energy costs, is seen rising 0.4% from a month earlier. That would mark the second straight monthly acceleration in a gauge that’s largely been receding over the past two years. And when analyzing the data on a three- or six-month basis, both would rebound above 2% after dipping below the Fed’s target in December.
World
Ukrainian President Volodymyr Zelenskiy said his country has lost 31,000 soldiers since Russia’s full-scale invasion started two years ago as he stressed that a decision from the US Congress on $60 billion in aid was needed within a month. Zelenskiy said Ukraine has a “clear plan” for 2024, while making a blockbuster claim that parts of its 2023 battle strategy had been leaked to Russia.With the war now in its third year, Russia has gained fresh momentum, exploiting Kyiv’s deficit of ammunition and shortage of troops. US support, a crucial lifeline, faces formidable obstacles in the Republican-led House of Representatives, even after a joint $95 billion package for Ukraine, Israel and Taiwan cleared the Senate.