Monday Morning Meeting Notes (03/27/2023)

Weekly Economic Insights

Monday Morning Meeting Notes (03/27/2023)

Bradley Prosper, CFA®, CFP® Weekly Economic Insights

Monday Morning Meeting Notes (03/27/2023)

General Info:

  • The Federal Reserve (Fed) raised rates by 0.25%, bringing the fed funds rate to a range of 4.75-5.00%
  • Chairman Jerome Powell noted in his press conference that the recent banking events may result in a tightening of credit conditions, which may have the same effects that their policy does, so less rate hikes may be necessary
  • In addition, the Fed updated its Dot Plot estimates and now sees the fed funds rate finishing 2023 at 5.1% (implies one more 0.25% rate hike this year)

Source: Bloomberg, as of 03/22/23
  • Fun Fact: Nachos were invented in 1943 by Ignacio Anaya, a maître d' at Victory Club Restaurant in Piedra Negras, Mexico. He found himself in a pinch when a group of guests arrived hungry at his restaurant, and he was without a chef. He went to the kitchen and began cutting up tortillas, which he then topped with cheese and jalapeño peppers. An ode to his nickname, he called the dish “Nachos Especiales”
  • To celebrate Anaya's invention, the city of Piedras Negras holds a three-day Nacho Fest every year around October 21, the International Day of the Nacho

Monday 03/27:

  • Germany IFO business climate
  • China industrial profits

Tuesday 03/28:

  • Walgreens Boots Alliance reports earnings
  • U.S. Senate Banking Committee holds the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank
  • U.S. Conference Board consumer confidence index for March
  • Apple launches a new classical music service, with the creative name of Apple Music Classical

Wednesday 03/29:

  • U.S. House panel will hold a hearing focused on the recent bank failures, with Fed Vice Chair of Supervision Michael Barr and FDIC Chairman Martin Gruenberg to testify
  • EIA crude oil inventory report

Thursday 03/30:

  • The European Central Bank (ECB) publishes its Economic Bulletin, which presents economic and monetary information that forms the basis for the central bank’s policy decisions
  • In addition, the March Bulletin includes economic analysis and macroeconomic projections on inflation, growth, public finances, and external trade
  • Germany consumer price index (CPI) data
  • Eurozone economic confidence and consumer confidence data
  • U.S. initial jobless claims and continuing claims data

Friday 03/31:

  • U.S. University of Michigan consumer sentiment index for March
  • U.S. personal income and spending data for February
  • U.S. personal consumption expenditure (PCE) data for February
  • PCE is expected to have increased 0.3% month-over-month, while the year-over-year pace is expected to have slowed from 5.4% to 5.1%
  • Core PCE, the Fed’s preferred inflation gauge as it excludes volatile food and energy costs, is expected to have increased 0.4% month-over-month, while the year-over-year pace is expected to remain steady at 4.7%
  • CPI data for the Eurozone, France, and Italy
  • Japan unemployment, industrial production, and retail sales data
  • Eurozone unemployment rate for February

About the Author

Bradley Prosper, CFA®, CFP®

Senior Research Analyst
Mr. Prosper is a member of the Firm’s investment research group where he assists in conducting investment research that is instrumental in the construction, maintenance, and management of client portfolios. This research includes the procurement of primary data via direct investment manager interviews as well as analyzing information from our data resources.