Global Economic Focus Shifts To Central Bank Decisions

According to PANews, recent mixed economic data has led swap traders to reduce their bets on the Federal Reserve's easing policy path. This week, the Dow Jones Industrial Average fell by 1.82%, while the S&P 500 Index ended a three-week winning streak with a 0.64% decline. In contrast, the Nasdaq Composite Index rose by 0.34%. Bitcoin has experienced a seven-week rally, marking its longest streak since 2021. The final significant monetary policy week of 2024 is set to capture investors' attention. By the close of next Friday, at least 22 central banks, representing two-fifths of the global economy, will have determined borrowing costs. The outcomes are likely to highlight the increasingly uneven momentum of easing policies as policymakers weigh various risks for the coming year. Key events in the upcoming week include a speech by European Central Bank President Christine Lagarde on Monday at 15:30 UTC+8, followed by a speech from Bank of Canada Governor Tiff Macklem on Tuesday at 04:45 UTC+8. On Thursday, the Federal Reserve will announce its interest rate decision and economic projections at 03:00 UTC+8, with a subsequent monetary policy press conference by Fed Chair Jerome Powell at 03:30 UTC+8. The Bank of Japan will also reveal its interest rate decision on Thursday, with a press conference by Governor Kazuo Ueda scheduled for 14:30 UTC+8. Additionally, the United States will release revised third-quarter GDP annualized growth rates, initial third-quarter personal consumption expenditure rates, and the December Philadelphia Fed Manufacturing Index at 21:30 UTC+8. Notably, the Federal Reserve's preferred core inflation measure, the Personal Consumption Expenditures (PCE) Price Index, is set to be released next Friday. Economists predict that the November PCE, excluding food and energy, may rise by 0.2%, marking the smallest increase in three months. This report is also expected to show robust growth in consumer spending and income, indicating the economy's resilience.