Federal Reserve Chairman Kevin Warsh leaves his swearing-in ceremony.
Credit: Aaron Schwartz / AFP via Getty Images
New Fed chair Kevin Warsh will oversee his first meeting this week, giving investors a chance to see a fresh face and a new perspective.
The Federal Open Market Committee, including Warsh, is slated to convene Tuesday, and is widely expected to leave interest rates unchanged when the meeting concludes Wednesday. Warsh is slated to hold a press conference, which will be one of his first opportunities to lay out a vision for confronting inflation.
Warsh accepted the nomination in January, when markets were embracing the possibility of rate cuts in the year ahead; inflation was declining, and the job market was lackluster. The war with Iran has upended those expectations. Soaring energy prices pushed inflation to a three-year high last month, and hiring has repeatedly surpassed expectations.
A number of Fed officials have said the central bank may need to raise the federal funds rate in the hopes of curbing inflation without quashing the labor market. Investors will give considerable weight to Warsh’s outlook—and how much detail it contains.
Warsh believes the Fed should be circumspect about its longer-term thinking, arguing the central bank boxes itself in with detailed disclosures and forecasts. If the Fed says less, however, markets may move more in response to economic indicators as investors try to surmise future Fed moves, analysts say.
Investors will get a look at how consumers are adapting to higher prices when May retail sales data comes out Wednesday. Results from CarMax, La-Z-Boy and supermarket giant Kroger will round out the short week. (Stock and bond markets will be closed Friday for Juneteenth.)
Market Recap
Stocks came under some pressure last week, but the major U.S. indexes managed weekly gains amid optimism about a possible resolution to the U.S.-Iran conflict and the arrival of the SpaceX IPO. That latter deal, which raised more money than any IPO ever, helped lift stocks on Friday, with the company’s shares finishing the day above their offer and open prices. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average all booked gains Friday, while oil prices retreated. Read our week-end trading roundup here.
This Week’s Top Events
Here’s a look at notable events happening in the week ahead. TradingView publishes a more detailed calendar, but clicking the link will take you off the Investopedia site.
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Tuesday, June 16: La-Z-Boy (LZB) is set to release its fourth-quarter results after the closing bell, followed by a conference call Wednesday at 8:30 a.m. ET. Investors will watch for signs of strain after another furniture company, MillerKnoll, tempered its outlook in response to soaring logistics costs and shipping disruptions.
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Wednesday, June 17: CarMax (KMX) plans to share its first-quarter results before the stock market opens, and host a conference call at 8:00 a.m. ET. The used-car company recently brought in a new CEO, Keith Barr, who is contending with pressure from activist firm Starboard Value.
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Wednesday: The Census Bureau is scheduled to release May retail sales figures at 8:30 a.m. ET. Retail spending ticked up 0.5% from March to April, with most of the growth concentrated at gas stations. Americans are putting less gas in the tank, frequenting pumps at wholesale clubs and making fewer stops at discretionary stores as they try to curtail spending.
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Wednesday: Jabil (JBL) is slated to release its third-quarter results before the opening bell, and host a conference call at 8:30 a.m. ET. Investors will look for signs that the AI buildout is fueling demand for Jabil’s circuit boards. Shares have shot up some 65% this year.
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Wednesday: The Federal Open Market Committee is slated to announce its interest rate decision at 2 p.m. ET, followed by a press conference with Warsh at 2:30 p.m. ET.
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Thursday, June 18: Kroger (KR) has scheduled a conference call on its first-quarter results at 8 a.m. ET, with the numbers expected earlier that day. CEO John Foran—a relatively new hire—said last month that the supermarket operator is trying to win market share by cutting prices.
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Thursday: Accenture (ACN) is set to host a conference call on its third-quarter results at 8 a.m. ET, with the figures released ahead of the event. Investors are worried Accenture may lose ground as the federal government curtails spending and AI tools advance.
