The Federal Reserve has a dual mandate of controlling inflation and supporting job growth. What happens with the Fed Funds Rate depends on what's going on in those two areas, which bracket this week's economic news.
Monday, we get the Fed's favorite inflation gauge, Core PCE Prices, expected to stay well under control. Friday's January Employment Report is forecast to add 150,000 jobs, which is all to the good, but not enough to prevent the unemployment rate from edging up a tad as the workforce grows.
Other key economic indicators include Monday's Chicago PMI take on Midwest manufacturing, Tuesday's ISM manufacturing index and Thursday's ISM services index. All are expected to continue to show expansion, with readings over 50.
From my "Inside Lending Newsletter" for Jan. 31, 2011
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