#SHIB The most important economic event expected by the market this week

This week the market will be in chaos, as it should be. There are many major events on the busy schedule, and investors are preparing to deal with the impact on the global economy.
From changes in US interest rates to decisions by the central banks of Japan and the UK, there is nothing boring about this week. Every number, decision, and statement is important, and the market will analyze them, looking for any signs of what may happen next.
Fed Interest Rate Decision: Key Event
The focus on Wednesday is the Federal Reserve. Analysts are almost certain that the Fed will cut interest rates by 0.25%, bringing the rate range to 4.25%-4.50%. There is no room for discussion in the futures market, with a 95% chance of this happening.
This reduction is a response to the sharp increase in interest rates in the past year, aiming to control inflation once again. However, inflation has not been well controlled. Data from the Bureau of Labor Statistics shows that the growth rate reached 2.7% in November, compared to 2.6% in October.
At the same time, the labor market is refusing to collapse under pressure. The U.S. economy added 227,000 jobs last month, exceeding expectations. Why is this important? Because even if the Fed cuts interest rates this week, the next step is not certain.
As Donald Trump's return to the White House in January approaches, the Fed may want to keep interest rates steady for a while. The inauguration ceremony will take place around January 20th, followed by the Fed's next meeting on January 29th, when the Fed may pause to assess the impact of its policies on the economy.
Purchasing Managers' Index, Gross Domestic Product and Retail Sales: Supporting Business
On Monday, S&P Global will release the Purchasing Managers' Index (PMI) report. This little number gives us a quick overview of the U.S. service industry, which is driving economic growth while manufacturing slows down.
The November purchasing managers index reached 56.1, indicating expansion, but the expected index for December is 55.0, a slight decrease. Although not catastrophic, this indicates that even the service industry is not immune to the impact.
On Tuesday, retail sales figures for November showed a decline. These figures tell us about consumer spending and position. It grew by 0.3% in October, but in November, with the arrival of the holiday shopping season, this figure may increase to 0.2% to 0.4%.
However, as inflation rates and high interest rates rise, there will not be a surge in spending. Fast forward to Thursday, we have received the final estimate of GDP for the third quarter of 2024. The previous figure showed strong growth, reaching 4.9%, thanks to consumer spending and business investment.
Economists now expect a slight adjustment to 4.7%. Why? It may be due to trade balance and inventory adjustments.
On Thursday, we will also learn about the existing home sales data for November to understand the extent of the real estate market's downturn. Insiders say: the situation is not good. Sales fell by 1.4% in October, and analysts expect another 2% decline.
Crossing the Pacific, Japanese banks are working hard to take the next step. Discussions about possible interest rate hikes are becoming increasingly frequent, especially after former central bank governor Haruhiko Kuroda's attempt at normalization. The yen is still under pressure, and inflation seems to be performing well. But the key here is: policies may destroy factions.
The Prime Minister of SHIB restarted the election, but the results were quite different, leaving the Liberal Democratic Party in a state of limbo in the parliament. Now they rely on the People's Democratic Party, a smaller opposition party, which is not happy about further interest rate hikes.
On the other side of the mountain, the Bank of England is expected to remain stable. The Bank of England may keep the loan interest rate at 4.75% on Thursday. The inflation data for November (expected to fall the day before) may change the situation.
The Bank of England's Monetary Policy Committee is unlikely to cause a sensation this week. Most members are likely to vote to maintain the current interest rate. However, there is little chance of dissent, and some members may be more pessimistic, anticipating a rate cut in 2025.#BTC Hits a New ATH: What’s Next?
#Will Memecoins Experience another surge?
#Which DeFi Tokens Are You Bullish on?