Resilient Consumer Demand and Easing Price Pressures: A Busy Week Ahead

Next week's economic calendar is packed with important releases and events that could shape the course of monetary policy. The personal income and spending report for July is expected to show resilient consumer demand, while PCE inflation should point to easing underlying price pressures.

The Jackson Hole Economic Policy Symposium will also be in focus, where Fed Chair Warsh is likely to emphasize the central bank's longer-term policy framework and task force priorities. While Warsh has refrained from laying out his near-term reaction function, he may use this opportunity to expand upon some of the 'big questions' his task forces are working on.

These include potential options for the size and composition of the balance sheet, ways the Summary of Economic Projections could be more effective, or how many meetings the FOMC should hold annually. However, Warsh is likely to be careful not to get too far ahead of the task forces and commit to any changes.