Friday’s Consumer Price Index (CPI) Report Could Prompt The Fed To Taper Faster

Friday’s Consumer Price Index (CPI) Report Could Prompt The Fed To Taper Faster

Equity index futures are pointing slightly higher on Monday morning as investors appear to be a little tentative ahead of the Fed meeting later this week. Friday's Consumer Price Index (CPI) shouldn't stand in the way of any plans by the Fed to reduce its amount of stimulus. On Tuesday, the Fed will get more inflation information with the Producer Price Index (PPI). Then on Wednesday, the retail sales report will be released in the morning, followed by the FOMC interest rate statement in the afternoon. Investors hope the statement will describe any change to the Fed's tapering plans. The Fed isn't the only central bank meeting this week; announcements are also expected from the Bank or England (BoE), European Central Bank (ECB), and the Bank of Japan (BoJ). The Fed is expected to accelerate the pace of reducing its bond-buying economic stimulus program. The Bank of England is expected to stand pat as it waits to see the impact of the Omicron variant on the United Kingdom's economy, but the BoE is feeling pressure to raise rates to combat inflation. The ECB is expected to follow the Fed's lead by reducing its bond-buying programs. The BoJ may stand alone