There was no fresh news about President Donald Trump’s plans to impose levies, meaning the January consumer price index print will likely be the main story driving the market action. The Bureau of Labor Statistics is set to publish the January CPI print at 8.30 a.m. Eastern Time. Economists surveyed by FactSet are expecting inflation to be up 2.9% from a year ago.
The reading will show the market whether the Federal Reserve has any scope to lower interest rates this year. Chair Jerome Powell stuck to the script when he kicked off his twice-yearly Congressional testimony, telling the Senate Committee on Banking, Housing, and Urban Affairs that policymakers will take a cautious approach to rate cuts, with inflation still too high and the labor market looking healthy. Powell is set to return to Capitol Hill on Wednesday to appear before the House Financial Services Committee.
