This Week: Consumer confidence, Fed policy, inflation update

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A look at some of the key business events and economic indicators upcoming this week: Staying confident The Conference Board releases its gauge of consumer confidence for July on Tuesday. Economists project that confidence remains high following a surprising jump in June, when The Conference Board’s consumer confidence index reached 109.7, its highest level in 18 months. The measure is expected to rise to 110.3 in July. A reading of 90 or better reflects a healthy economy. Consumers remain confident amid a strong labor market that has acted as a bulwark to slower economic growth elsewhere. Consumer confidence, by month: Feb. 103.4 March 104.0 April 103.7 May: 102.5 June: 109.7 July (est.): 110.3 Source: FactSet. Fed peaks interest The Federal Reserve delivers its latest update on interest rates Wednesday. The central bank is widely expected to raise its benchmark interest rate a quarter percentage point to between 5.25% and 5.50% after forgoing a rate increase at its previous meeting. Wall Street is betting that the central bank will then hold rates steady at that level for the rest of 2023, ending its aggressive policy that brought rates up from near zero since early 2022. Measuring inflation The Commerce Department releases its June snapshot of U.S. consumer spending and inflation Friday. The personal consumption expenditure price index, a gauge of inflation that’s closely monitored by the Federal Reserve, has been easing over the last few months. The Fed has been raising interest rates for more than a year to tame inflation. Wall Street is betting that the central bank will raise rates one more time this year, then pause. Consumer spending, monthly percent change, seasonally adjusted: Jan.: 0.6 Feb.: 0.3 March: 0.1 April: 0.4 May: 0.1 June: (est.): 0.2 Source: FactSet