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The week ahead includes some important economic data points that will provide us with a better sense of the economic health in the U.S. Leading indicators such as the NFIB small-business index and consumer sentiment index will gives us some insight on how consumers and small-business owners are currently feeling and their outlook on the economy.
Additionally, inflation, measure by consumer price index, will be released on Tuesday. Expectations are for core inflation to increase by 1.8%, which is still below the Fed’s target. However, inflation has started to increase at a quicker pace during the pandemic due to an increase in money supply and strong Fed actions. Despite the uptick in inflation, disinflation pressures remain. Rents in large cities have fallen, increase in permanent job losses, supply disruptions and changing consumer habits continue to make inflation a difficult figure to gauge moving forward.
Finally, the third quarter earnings season kicks off during the next week, as big financials taking center stage.
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