Trump's Policy Twists Leave Markets on Edge as Fed Meeting Looms
The US economy is facing uncertainty as the Trump administration's policy changes have left markets on edge. The recent threats of military action against Iran have subsided, but oil prices remain high, hovering near $100 per barrel.
Locally in New Zealand, the focus will be on the upcoming RBNZ series, particularly household deposit growth, which stalled in May. Australia's CPI release and PPI data will also draw attention, with expectations of a small rise to 4.1% and a rise to 3.5%, respectively.
The US Federal Reserve meeting is set for Thursday, with analysts predicting no change in interest rates despite rising inflation. The central bank's inflation target is 2%, but recent data shows prices are above that threshold. Financial markets are pricing in more chance of a hike, either at this meeting or by the end of the year.
In Japan, the Bank of Japan will make its decision on Friday, with no change expected from their 1% rate. China's Communist Party meeting is also underway, where new stimulus packages may be announced to address sluggish economic growth.