This week sees focus shift back to the US where the Federal Reserve will provide markets with a policy decision on Wednesday evening. No major changes are expected but the crucial detail will be surrounding the area of inflation. The latest 5% year/year rise in the US has certainly caught the attention of many prominent forecasters. With stock markets continuing to make new highs, the Fed’s claim that the recent surge in inflation is temporary leaves them very little margin for error. As a result, this month’s announcement will be important.
Elsewhere, the UK prime minister, Boris Johnson will tonight announce whether there will be a 4-week delay in the nation’s reopening plan. The Delta variant is still ravaging parts of the country and the government has been locked in discussion on how to address it. On the UK data front – inflation, retail sales, and labour data are all due for release this week.
Written by Viv Savani. 8:22am, June 14th 2021
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