THE Federal Reserve nor has its bull cycle ended. fees and the market is already betting on cuts. More than 60% chances are projected for a downward readjustment of rates this year.
But to continue with this optimism, the market awaits data from the payroll, the US employment report. If the job numbers are robust, it is a sign that the economy is still heated and may require a longer period of high interest rates.
The forecast is for the opening of 190,000 jobs in January, the lowest advance in two years.
It is worth remembering that last Wednesday (1), the Federal Open Market Committee (FOMC, in its acronym in English) raised the Federal Reserve’s benchmark interest rate target by 0.25 percentage points. The rate is now in the range between 4.50% and 4.75%.
Furthermore, the president Jerome Powell reinforced that new highs will be necessary to bring inflation back to the 2% target.
Check the economic agenda for this Friday (03)
| Time | Country | Indicator |
| 06h | euro zone | Services and Composite PMI (January) |
| 06:30 am | UK | Services and Composite PMI (January) |
| 07h | euro zone | Producer Price Index (December) |
| 09h | Brazil | Industrial production (December) |
| 10am | Brazil | Services and Composite PMI (January) |
| 10:30 am | USA | Payroll |
| 11:45 am | USA | Services and Composite PMI (January) |
Policy
Yesterday, in a message at the beginning of the legislative year, the president Luiz Inacio Lula da Silva stated that it will submit to the appreciation of the Congress the new fiscal rules in the first semester. He also highlighted the importance of tax reform.
Lula also suggested a new pricing policy for fuels and “a more active policy to reduce exchange rate volatility”.
At night, in an interview for Rede TV!, Lula again criticized the autonomy of the central bank and saying that there is no reason for the Selic to be at 13.75% per annum.
“I want to know what independence was for. I will wait for this citizen [Roberto Campos Neto] end his mandate for us to make an assessment of what the independent central bank meant”, he said.
Check out President Lula’s agenda for this Friday (03)
| Time | Schedule | Local |
| 09h | Meeting with the Minister of the Institutional Relations Secretariat, Alexandre Padilha, and the Minister of the Social Communication Secretariat, Paulo Pimenta | Planalto Palace |
| 09:30 am | Meeting with the Attorney General of the Union, Jorge Messias | Planalto Palace |
| 10 am | Presentation of Credential Letters from the UK Ambassador to Brazil, Stephanie Al-Qaq | Audience Hall, Planalto Palace |
| 10:30 am | Presentation of credentials of the Chinese Ambassador to Brazil, Zhu Qingqiao | Audience Hall, Planalto Palace |
| 11 am | Presentation of credentials of the Ambassador of Syria, Rania Al Haj Ali | Audience Hall, Planalto Palace |
| 11:30 am | Presentation of credentials of the Ambassador of Zimbabwe in Brazil, Meshack Kitchen | Audience Hall, Planalto Palace |
| 12 noon | Presentation of credentials of the Ambassador of El Salvador in Brazil, Luis Oswaldo López Álvarez | Audience Hall, Planalto Palace |
| 2:30 pm | Presentation of credentials of the Ambassador of the Czech Republic in Brazil, Pavla Hvrlíková | Audience Hall, Planalto Palace |
| 3pm | Presentation of Letters of Credence of the Philippine Ambassador to Brazil, Joseph Angeles | Audience Hall, Planalto Palace |
| 3:30 pm | Presentation of credentials of the Turkish Ambassador to Brazil, Halil Ibrahim Akça | Audience Hall, Planalto Palace |
| 4pm | Presentation of credentials of the Ambassador of the United States of America to Brazil, Elizabeth Bagley | Audience Hall, Planalto Palace |
| 6 pm | Departure to Sao Paulo | Brasilia Air Base |
Source: Moneytimes
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