This Week's Highlights

The US CPI data for March was unexpectedly high, which lowered investors' expectations for the Federal Reserve to cut interest rates in the short term. The March PCE price index, which is due to be released this Friday, is expected to remain high, which is expected to remain high, which reinforces the market's expectation that interest rate cuts will need to be patient. According to general market forecasts, the PCE index may rise slightly to 2.6% year on year in March due to rising energy costs.

In terms of economic growth, the market expects the annualized annualized value of the US GDP in the first quarter to increase by only 2% compared to the initial quarterly value, which is a sharp slowdown compared to 3.4% in the previous quarter. This shows that under the influence of continued high interest rates, the US economy is beginning to show signs of deceleration. Despite this, the US economy showed some resilience throughout the last year, mainly due to increased consumer spending and local government spending.

Judging from the policy outlook, Federal Reserve officials may need to re-evaluate strategies to combat inflation, because current data shows that progress in fighting inflation has stalled. This could mean that the Federal Reserve will need to keep interest rates high for longer than expected.

This week is also an important earnings week. Many corporate giants will announce their quarterly results, and the market will pay close attention to these reports to assess the health of the economy and all walks of life. These data and reports will have an important impact on market sentiment and policy expectations.

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