Beyond that melodrama, every central bank is acting against a tense global backdrop, evidenced by the recent market rout in Japan, lingering investor concern over Trump\u2019s designs on Greenland, and his incessant threats of further trade disruption. <\/p>\n Recent data showing that the US unemployment rate declined in December while inflation holds above the Fed\u2019s target may work to placate hawks and doves alike, potentially garnering more support for a pause in the easing cycle. <\/p>\n Powell\u2019s press conference will be the first since he disclosed Justice Department subpoenas affecting the Fed, and since a Supreme Court hearing regarding Cook\u2019s battle to keep her job. Still, expectations are low that he\u2019ll share much more on either of those fronts.<\/p>\n The week\u2019s data calendar includes figures out Friday on the December producer price index. Economists expect a modest acceleration in the gauge of wholesale costs from a month earlier.<\/p>\n Other upcoming reports include durable goods orders and the trade deficit for November, as well as January consumer confidence.<\/p>\n Bank of Canada Policy to Remain Accommodative in 2026Turning north, the Bank of Canada is widely expected to hold its policy rate at 2.25% on Wednesday, with the monetary policy report set to emphasize slower growth and heightened uncertainty tied to this year\u2019s review of the US-Mexico-Canada Agreement. <\/p>\n Traders in overnight swaps see the central bank staying on the sidelines for most of 2026, after policymakers said the current rate is at \u201cabout the right level\u201d to support the economy without reigniting inflation. <\/p>\n Statistics Canada will release November GDP by industry along with a flash estimate for December, likely pointing to weak fourth\u2011quarter output. November trade data may show a further drop in the share of exports to the US.<\/p>\n AsiaAustralia will be a focus when it releases a blast of inflation data ahead of the Reserve Bank\u2019s Feb. 3 rate decision. The figures, due on Wednesday, are expected to show that consumer price gains accelerated to 3.6% year over year in the fourth quarter. <\/p>\n Coming on the heels of strong jobs data, the inflation report will likely underpin the RBA\u2019s hawkish bias and spur speculation over a potential rate increase next month. <\/p>\n Japan also publishes inflation data. Friday\u2019s report for Tokyo, a leading indicator for national trends, is forecast to show that the main gauge, excluding fresh food, slowed to 2.2%. <\/p>\n Meanwhile, speculation has mounted that Japanese authorities may be preparing to enter foreign-exchange markets in a bid to halt the yen\u2019s slide, possibly with the rare assistance of the US. <\/p>\n Prime Minister Sanae Takaichi on Sunday sent a fresh warning to financial markets amid a weakening yen and surging bond yields, saying the government will be ready to take action.<\/p>\n \u201cIt is not for me as a prime minister to comment on matters that should be determined by the market, but we will take all necessary measures to address speculative and highly abnormal movements,\u201d she said during a television debate among party leaders.<\/p>\n China publishes industrial profits data on Tuesday that may offer fresh evidence of the pressures mounting for manufacturers as weak demand squeezes corporate margins for exporters and domestic-oriented industries alike. <\/p>\n December trade data is on tap from the Philippines, Hong Kong, Sri Lanka, New Zealand and Thailand, while Japan and New Zealand will release consumer confidence reports. New Zealand also release a gauge of business sentiment for January after the reading jumped in December to the highest in 30 years.<\/p>\n On the policy front, Pakistan\u2019s central bank is expected to cut its SBP rate to 10% on Monday, while authorities in Sri Lanka are seen holding settings steady on Wednesday.<\/p>\n Europe, Middle East, AfricaIn the euro area, reports will focus on momentum in the economy. Germany\u2019s Ifo survey on Monday may be closely watched given that the sentiment index hasn\u2019t really matched recent buoyancy in industrial data that may reflect the government\u2019s defense and infrastructure stimulus. <\/p>\n The region\u2019s first glimpse of GDP in the fourth quarter will arrive on Friday. All economists surveyed by Bloomberg predict some sort of expansion after Germany\u2019s sketchy data already pointed to unexpectedly strong growth. France, Italy and Spain are all predicted to have shown increases in output. <\/p>\n Few ECB officials are scheduled to speak, and on Thursday a blackout period starts before their first decision of the year, on Feb. 5. The BOE is also entering a quiet period in advance of its outcome the same day. <\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Reserve and three of the central banks that just backed its embattled chair are poised to…\n","protected":false},"author":3,"featured_media":542195,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[2440,64,79,1257,101930,142,278,75,8304,277,67,132,68],"class_list":{"0":"post-542194","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bank-of-canada","9":"tag-business","10":"tag-economy","11":"tag-fed","12":"tag-interest-rate-cut","13":"tag-jerome-powell","14":"tag-supreme-court","15":"tag-tariff","16":"tag-trade-war","17":"tag-trump","18":"tag-united-states","19":"tag-unitedstates","20":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115956776122122992","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/542194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=542194"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/542194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/542195"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=542194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=542194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=542194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"814x-1\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/et-logo.jpg\" "\\"814x-1\\""){kind=logo}
BloombergThose latter three were among more than a dozen, including the Bank of England and European Central Bank, whose chiefs spoke out in \u201cfull solidarity\u201d with Chair Jerome Powell<\/a>, backing independence at a time when the administration in Washington is dialing up the pressure on him and his colleagues.
Aside from Trump\u2019s frequent complaints at its unwillingness to slash interest rates, the Fed<\/a> now faces grand jury subpoenas threatening criminal indictments, while the Supreme Court<\/a> heard arguments on Wednesday on whether the president can fire Governor Lisa Cook.<\/p>\n![\"ET](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/06\/118783427.cms.png\")
Live Events\u201cWe are in a more shock-prone world,\u201d Kristalina Georgieva, head of the International Monetary Fund, said Friday at the closing session of the World Economic Forum in Davos. \u201cWe\u2019re not in Kansas any more.\u201d
While policymakers are focused on the potential growth risks posed by tariffs, they\u2019re also watchful for possible inflation pressures in the current environment.
As many as 18 central banks globally are on the calendar for decisions in the coming week. In contrast to the Fed, counterparts in Africa, confronting a different stage in the economic cycle, may unveil a wave of easing.
Elsewhere, inflation data from Australia to Brazil and Japan, Chinese industrial profits and gross domestic product in the euro region will be among the highlights.US and CanadaFed officials are expected to hold rates steady after three straight cuts at the end of 2025. Powell is likely to telegraph his view that policy is well-positioned for now, but hold off from signaling much about where rates are headed. That will buy officials time to see the impact of previous reductions.<\/p>\nBloombergHowever, an index that removes distortions from energy subsidies is expected to hold steady at 2.6%, demonstrating that underlying price pressure remains robust and keeping the Bank of Japan on track for more increases to borrowing costs. <\/p>\nBloombergFourth-quarter GDP data is scheduled from the Philippines, Taiwan and Hong Kong. Growth is estimated to have sped up to 1.5% quarter-on-quarter in the Philippines, while Taiwan\u2019s year-on-year advance is seen accelerating to 8.75%. <\/p>\nBloombergSpain and Germany will also release price data on Friday in advance of wider regional numbers due the following week. Economists anticipate inflation slowed in January to 2.4% in Spain \u2014 the weakest level in seven months \u2014 while it likely held at 2% in Germany. <\/p>\n