- Rate hike expected at the Fed meeting
The most prominent development for the week starting March 19 will be the Federal Open Market Committee (FOMC) meeting, which will conclude on Wednesday.
The Fed is expected to raise interest rates by 25 basis points at its first policy meeting under Chair Powell’s leadership.
As markets mainly price the rate hike decision, the focus will be on economic projections and the FOMC press conference - another first for Powell.
- budget will end on March 23
Another important item on the economic agenda this week is the deadline for the last stopgap bill that will expire on Friday, March 23.
The Democrats and Republicans in Congress need to pass a new budget to avoid another shutdown.
The U.S. federal government was forced into a partial shutdown for three days between Jan. 20 and 23 because of disagreements over the budget.
Investors will be closely following the negotiations as the Republicans hope to reach consensus on a $1 trillion spending bill.
Other developments during the week include the G20 Ministers and Central Bank Governors Meeting, which will be held March19-20 in Argentina's capital Buenos Aires.
This week’s data calendar includes current account deficit, new and existing home sales, durable goods orders and service sector PMI.
- Inflation rose in line with expectation
The inflation data announced last week was one of the top items for those following the U.S. economy.
According to official estimates, the Consumer Price Index (CPI) rose 0.2 percent month-on-month and 2.2 percent year-on-year in February.
During the same period, core CPI, which excludes volatile energy and food prices, increased by 0.2 percent monthly and 1.8 percent annually, in line with expectations.
In addition, the Producer Price Index (PPI) rose 0.2 percent month-on-month and 2.8 percent year-on-year in February.
Other positive data came from the consumer side. The University of Michigan’s Consumer Confidence Index (UMICH) rose to 102 in March, marking the highest level in 14 years.
Retail sales in the country, on the other hand, decreased by 0.1 percent in February, despite the expectation of a 0.3 percent increase, its third monthly fall in a row.