Week ahead in the US: Trump, FOMC, debt limit and data - Danske Bank

Analysts from Danske Bank take a look into next week key event in the US. The most relevant event will be the FOMC decision on Wednesday. 

Key Quotes: 

“In the US, next week brings the next Fed rate decision on Wednesday, when we expect the Fed to hike its target range by 25bp to 0.75-1.00% in line with market pricing and consensus among analysts. Given the very high probability of a March hike, the question is now how many hikes to expect for the rest of the year.”

“On Wednesday, the debt limit suspension expires. We may enter a period of fiscal uncertainty in the US, as the Republicans do not have super majority in the Senate, so the Democrats (and fiscal hawks within the Republican Party) can filibuster any legislation on the debt limit. Also next week, we expect the Trump administration to publish its budget proposal for the 2018 fiscal year running from Q4 17 to Q3 18.”

“In terms of data releases, both CPI and retail sales data for February are due on Wednesday (…) In terms of soft economic indicators, we are due to get the preliminary University of Michigan consumer confidence data for March on Friday and NFIB small business optimism for February on Tuesday.”