Investors brace for crucial economic data and inflation insights this week

In the United States, economic indicators are expected to play a critical role this week as multiple reports are set for release. On February 24, 2025, significant data, including the Chicago Fed National Activity Index for January, will be reported. This index, scheduled to release at 8:30 a.m. ET, will provide insight into economic activity across the country. Following this announcement, at 10:30 a.m. ET, the Dallas Fed Manufacturing Index will also be published, shedding light on manufacturing conditions in the Dallas area. The week ahead will also feature housing-related reports. On Tuesday, the S&P CoreLogic Case-Shiller National Home Price Index is anticipated to be released, measuring changes in average sale prices of single-family homes in the U.S. Wednesday is expected to bring further housing data, including the MBA 30-Year Mortgage Rate and new home sales figures. These reports will contribute substantially to understanding the current housing market dynamics. Thursday's data on the GDP growth rate will provide essential insights into the performance of the U.S. economy during the fourth quarter of 2024. These findings will be crucial for investors as they gauge economic health and growth trends. However, the most awaited report is set to be released on Friday at 8:30 a.m. ET, detailing the personal consumption expenditure index, which is the Federal Reserve's preferred gauge of inflation. Earlier indicators suggested that following a hotter-than-expected Consumer Price Index report in January, the Federal Reserve may not be in a hurry to reduce interest rates further. Fed Chairman Jerome Powell signaled that the central bank might hold steady with rates, especially after having cut the benchmark borrowing level by one full percentage point in late 2024. Investors are closely monitoring these developments as they anticipate how the forthcoming economic data might influence the Federal Reserve's monetary policy decisions.