Housing, Inflation Data On Tap as Debate Rages on Strength of Economy

Source: US News —

A bevy of economic reports awaits investors and economists in a holiday-shortened week as the government gives updates on a key inflation measure and fourth quarter gross domestic product as well as private readings on the state of the housing market.

The releases of data, mostly for January, come against a backdrop of an economy that has been running hotter than expected and inflation that while trending downward still is running well above the level the Federal Reserve believes is needed.

The Fed’s thinking will be aired on Wednesday when the minutes of its most recent meeting will be released. Analysts expect it will show a healthy debate among officials over whether the recent downshift to a 25-basis-point hike was enough or if some favored a more aggressive half-point increase.

“The decision to raise the federal funds rate at the last meeting was apparently not unanimous,” Sam Bullard, managing director and senior economist at Wells Fargo, wrote on Monday, so policy watchers will closely monitor any discussion on the disagreement.”