FOMC minutes reveal solid economic activity but lower growth projections and potential rate cuts.

From Investing.com: 2025-04-04 09:21:00

On Wednesday, the FOMC meeting minutes revealed that economic activity remains solid, but uncertainty has increased. Projections for growth were lowered, while the balance sheet runoff will slow starting in April. Analysts were not surprised by the announcement, and there are divided opinions on the number of rate cuts in 2025. Chair Powell stressed a wait-and-see approach amidst rising inflation expectations. Following President Trump’s tariff announcements, markets have been volatile, with some expecting rate reductions this year.

On Thursday, US CPI is expected to rise by 0.2% in March, while US PPI is seen climbing by 0.3%. The changing trade environment could affect pricing, but the market may not react strongly to the data.

Friday brings the release of UK GDP for February, with expectations for a rebound driven by retail sales and manufacturing ahead of US tariffs. The release is not expected to impact BoE pricing significantly, given the focus on inflation.

Also on Friday, US earnings season kicks off with a predicted annual growth rate of 7.3% for Q1 25. All sectors are expected to report lower earnings due to downward revisions, with guidance from companies crucial amidst economic uncertainty following global tariffs.



Read more at Investing.com: Week Ahead: US CPI, FOMC Minutes, Earnings Season and UK GDP