Wall Street will be closely watching this week a speech from Federal Reserve chair Jerome Powell on Tuesday, who will talk about the economic outlook.
Investors will be looking to see if the Fed chair signals his support for continued rate cuts, including into 2026.
Newest Fed member Stephen Miran will also be speaking just before Powell at the Economic Club of New York.
Kathleen Brooks, research director at XTB, noted that his speech will be analyzed to see what it can tell us about future Trump Fed picks, and what this may mean for the future of Fed policy.
A key economic release will be the Personal Consumption Expenditures (PCE) index, due out on Friday, which will provide an update on inflation.
Core PCE inflation, the Fed's preferred measure, fell to 0.2% in August while annual increases remained at 2.9%, above the central bank's target.
The Purchasing Managers' Index (PMI) survey data will also be released on Tuesday, providing the final monthly reading for the third quarter of 2025. The data should offer an update into how the world’s private sector companies are coping with US tariffs.
The US index is also expected to moderate slightly last month, while the UK’s composite PMI is expected to slide to 53.0, from 53.5 in August.
The manufacturing sector is anticipated to remain in negative territory at 46.7. If this is confirmed, then it would be 12 consecutive months of negative readings.