Wall Street is still confident about the recession as long as it expects that banking turmoil will continue. Fed rate-cut bets have increased steadily for the end of the year, which has put pressure on the dollar.
Investors will pay close attention to see if the regional Fed survey’s show minor improvements, if a few key housing readings show signs of stabilizing, and if the flash PMIs show the manufacturing activity remains stuck in contraction territory and as the service sector continues to soften.
In addition to a plethora of Fed speak, investors will closely pay attention to the Fed’s Beige Book. The Beige Book, which was released last Wednesday and highlighted a resilient economic climate, will be released again on Thursday. Fed’s Bowman will talk about central bank digital currencies on Tuesday. On Wednesday, Fed’s Goolsbee and Williams speak. On Thursday, Fed’s Waller talks about financial innovation, Mester discusses the economic and policy outlook, Bowman attends a Fed Listens event and Bostics talks about economic conditions. On Friday, Fed’s Cook will talk about economic…