Next week, the economic calendar is full. The Federal Open Market Committee is widely expected to leave monetary policy unchanged, and it is unlikely that Chair Powell will signal an upcoming tapering of the monthly pace of asset purchases. Officials will not revise their economic projections (no new dot plot). The Bureau of Economic Analysis will release its advance estimate of 2Q21 GDP growth, which should be strong. This release will also include annual benchmark revisions, which may shift the quarterly numbers around but are unlikely to alter the bigger picture. The Employment Cost Index will provide an update of labor cost pressures. The June report on personal income and spending will contain the latest reading on the PCE Price Index (the Fed’s key inflation gauge), but quarterly figures will have already been included in the GDP report.
As of close of business 07/22/2021