At last week’s FOMC meeting, the Federal Reserve acknowledged that inflation has eased compared to the previous year. However, the recent data show unsatisfactory progress toward the Federal Committee's 2% objective. And some officials have suggested that a further tightening might be the way to bring inflation down to the desired level. Despite the Fed's hawkish comments, on Friday, UBS expressed confidence that the Fed will cut rates by 50 basis points over the rest of FY24.

Looking ahead, the US will release its second-quarter GDP growth estimate on Thursday, May 30th. On Friday, we will see the PCE (Personal Consumption Expenditure) and core PCE data, expected to grow by 0.2% over April. Additionally, personal income and spending data, also due on Friday, which are anticipated to grown by 0.3% and 0.4%, respectively, over April.

Looking at the Indian economy, the Ministry of Statistics will release the year-on-year GDP growth rate, with analysts expecting a growth of 6.7%, down from the previous quarter's 8.4%. The markets reached a new high of 23,026.4 last week.

Date : 26th May '24; Source - Trading Economics, Reuters

LR