Home Blog Market Analysis Weekly Market Analysis 12/02/2024

Weekly Market Analysis 12/02/2024

by Buse Kozok
Weekly Market Analysis 12/02/2024

Last week, German inflation data and statements from US Federal Reserve (Fed) officials were followed in global markets throughout the week. There were important headlines, let's see what happened and how it affected the market.

  • Cleveland Fed President Loretta Mester said that if the economy develops as expected, policymakers will probably gain confidence in reducing interest rates later this year, but she sees no need to rush.
  • Minneapolis Fed President Neel Kashkari also stated that the improvement in inflation is important, but further progress is needed. Kashkari stated that he wanted to see inflation data for a few more months before the interest rate cut and that 2 or 3 interest rate cuts this year might be appropriate.
  • Richmond Fed President Tom Barkin stated that it makes sense to be patient about interest rate cuts.
  • While Fed Board Member Adriana Kugler presented an optimistic picture that the slowdown in US inflation will continue, she stated that there is little urgency in reducing the Fed's benchmark lending rate any time soon.
  • Boston Fed President Susan Collins said she believes the Fed will cut interest rates by 75 basis points this year, starting when data confirms inflation is heading toward 2% amid a strong labor market.

These were the statements from the Fed. While the consumer price index in Germany increased by 0.2% monthly in January, annual inflation, which was 3.7% in December, decreased to 2.9% in January. Global markets followed a mixed course throughout the week. Even though the ounce of gold rose above $2,045, it could not hold on and is priced at $2,020.

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