The FOMC rate decision and U.S. CPI are the main economic events of the day, however the media will also be paying close attention to the House grilling of AIG CEO Edward Liddy shortly after the opening bell on Wednesday.
At 8:30 a.m. EDT, the U.S. Bureau of Labor Statistics will release Consumer Price Index figures for February. Headline inflation is expected to grow 0.3% month-over-month after growing 0.3% in January, making for another flat annual inflation reading. Core inflation is expected to grow 0.1% month-over-month after growing 0.2% in January also keeping the annual core rate unchanged at 1.7%.
Simultaneously, the U.S. Bureau of Economic Analysis will release the fourth quarter current account balance. Economists expect a print of -$137.1B against the -$174.1B reading in the third quarter.
Also at 8:30 a.m. EDT, Statistics Canada will release wholesale trade for the month of January. Sales are expected to fall 2.7% month-over-month, following a 3.4% drop in the month prior.
At 10 a.m. EDT, AIG CEO Edward Liddy will testify before the House Financial Services Committee over his firm's handling of bailout funds.
At 10:30 a.m. EDT, the U.S. Energy Information Administration will release oil inventories for the week ending March 13. Economists are expecting a 1500k build in crude oil reserves following the previous 749k gain. Gasoline inventories are expected to come in lower by 1500k following the previous 2993k decline. Distillate inventories are expected to rise 1000k after increasing 2108k in the previous week. Refinery utilization is expected to come in flat after coming in 0.1% lower compared to the previous week's 0.43% decline.
At 11:30 p.m. EDT, the U.S. will sell $35 billion 56-Day cash management bills
The Federal Open Market Committee will announce its monetary policy decision after a two-day meeting on Wednesday. With rates already near zero, the Fed's toolkit is growing increasingly smaller. Possible actions include the purchase of long term government Treasuries to lower mortgage rates in the United States, or expanding its asset-backed securities purchase programs. The decision comes at 2:15 p.m. EDT.
At some point on Wednesday, the International Monetary Fund is expected to revise down its global GDP forecasts for 2009.
Schedule
8:30 CA Wholesale Sales (M/M) January Exp: -2.7% Prior: -3.4%
8:30 US Consumer Price Index (M/M) February Exp: +0.3% Prior: +0.3%
8:30 US CPI Ex Food & Energy (M/M) February Exp: +0.1% Prior: +0.2%
8:30 US Consumer Price Index (Y/Y) February Exp: +0.0% Prior: +0.0%
8:30 US CPI Ex Food & Energy (Y/Y) February Exp: +1.7% Prior: +1.7%
8:30 US CPI Core Index SA February Prior: +217.265
8:30 US Consumer Price Index NSA February Exp: +212.020 Prior: +211.143
8:30 US Current Account Balance Q4 Exp: -$137.1B Prior: $174.1B
10:30 US DOE US Crude Oil Inventories W/E March 13 Exp: +1500k Prior: +749K
10:30 US DOE US Gasoline Inventories W/E March 13 Exp: -1500k Prior: -2993K
10:30 US DOE US Distillate Inventory W/E March 13 Exp: +1000k Prior: +2108K
10:30 US DOE US Heat Oil Inventories W/E March 13 Prior: 1376k
10:30 US DOE US Refinery Utilization W/E March 13 Exp: -0.10% Prior: -0.43%
14:15 US FOMC Interest Rate Decision W/E March 13 Exp: 0.25% Prior: 0.25%
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2009