The First Slice for Monday, September 23, 2024

What’s Cooking This Week in the Economy?

The Federal Reserve made waves last week with a jumbo interest rate cut, and now all eyes are on what they’ll say next. Fed officials are set to deliver a series of speeches this week, providing insight into the economic landscape. This includes Fed Chair Jerome Powell, who will make his first public remarks since last week’s decision, and other key players like New York Fed President John Williams and Minneapolis Fed President Neel Kashkari. Investors will eagerly listen for clues on how the Fed views the current state of inflation and what might come next.

Speaking of inflation, Friday will serve up a fresh reading of the August Personal Consumption Expenditures (PCE) Price Index, the Fed’s favorite measure of inflation. In July, inflation had cooled to 2.5%, but that’s still above the central bank’s target. The big question is whether the August data will show further progress. If inflation continues to slow, it could impact everything from interest rates to consumer spending—and even your wallet.

But that’s not the only action on the docket this week. There’s also big news from corporate America as several major companies are set to report their earnings. Keep an eye on Micron Technology, Costco Wholesale, and KB Home, whose reports could provide critical insights into the housing, retail, and tech sectors. Costco’s earnings are exciting, as the company recently raised its membership fees for the first time in seven years, which analysts expect will boost revenue.

The housing market is also under the microscope. KB Home reports on Tuesday, and with the Fed’s decision to cut interest rates, there’s hope that mortgage rates might dip, giving homebuilders a little more breathing room. On Wednesday, Micron Technology will release its earnings after a rough quarter, with analysts paying close attention to whether the chipmaker can bounce back from disappointing revenue and stock downgrades……….. [read more]