Federal Reserve Chair Kevin Warsh testifies before Congress twice this week, his first time as chair. His testimony coincides with a wave of major bank earnings and fresh inflation data.

The overlap creates one of the year’s most closely watched weeks for markets.

Warsh’s Testimony and Inflation Data

Warsh appears before the House Financial Services Committee on Tuesday, July 14, hours after the June Consumer Price Index report lands. He then testifies before the Senate Banking Committee on Wednesday, following the Producer Price Index release.

Both readings will shape how lawmakers interpret his stance on rates. The testimony follows Warsh’s first FOMC meeting in June where officials signaled openness to a rate hike if inflation stays elevated.

His remarks also arrive after economists trimmed recession odds while raising inflation forecasts. That combination leaves the Fed little room to ease policy this year. Warsh inherited the role from his predecessor’s final FOMC meeting, which left him a sticky inflation picture and a volatile energy market.

Bank Earnings Test Economic Health

JPMorgan, Bank of America, Wells Fargo, Goldman Sachs, and Citigroup all report their earnings Tuesday. The results give investors an early read on loan demand and credit quality.

Net interest margins and loan loss provisions will also draw close attention. The reports follow banks clearing the Fed’s annual stress test with capital levels intact.

Rest of the Week’s Wave of Things to Watch

Morgan Stanley, Johnson & Johnson, ASML, and United Airlines report Wednesday. Morgan Stanley offers an investment banking view, while ASML’s order book will signal AI-driven chip demand.

Taiwan Semiconductor, Netflix, UnitedHealth, and GE Aerospace follow on Thursday. TSMC’s results carry particular weight after a stretch in which semiconductor stocks outpaced Big Tech. Netflix will test subscriber growth against a tougher streaming market, and UnitedHealth faces continued scrutiny over medical cost trends.

Thursday also brings June retail sales data. The reading offers a final consumer health check for the week. It arrives as markets weigh inflation risk against growth concerns during a period of sector rotation toward defensive names.

Источник: BeInCrypto