Deutsche Bank: Next week will see a flurry of speeches by Federal Reserve officials; investors should focus on how officials interpret the CPI data and any potential inclination toward further rate hikes.

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Golden Finance reported on July 11, according to Gelonghui, that Deutsche Bank said that after several weeks of relatively quiet remarks from Federal Reserve officials, this week will see a dense round of speeches ahead of the blackout period. The most closely watched item is: Waller kicked things off on Monday with a speech at the New York Association for Business Economics; Chair Waller testified on Tuesday and Wednesday; and several officials will deliver outlook remarks after the June CPI data is released (Cook on Wednesday, Vice Chair Jefferson, Dallas Fed’s Logan, and Kansas City Fed’s Schmid on Friday). It is expected that Waller will reiterate his recent statements while remaining silent about future policy actions. And because Waller usually prefers to go into detail about his policy reaction mechanism and expectations, his remarks will be closely watched in order to capture any signals of his policy inclinations. For the outlook-style speeches, we will focus on how officials interpret this week’s inflation data and whether any officials lean toward a July rate hike. As shown in the minutes of the June meeting, “several” officials believed there was reason to raise rates last month. Since then, the outlook has been mixed: oil prices and inflation expectations have eased, but later partially rebounded; the unemployment rate has continued to fall; and a dissenting vote supporting a rate hike at the July meeting is not ruled out.
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