U.S. Employment Numbers in December
The Fed hangs between employment figures and inflation thanks to its dual mandate. However, the labor market numbers have been able to make the Fed a bit more positive lately which further argues for a rate hike this year. On the other hand, Omicron cases in the U.S. continue to rise. This could have an impact on consumer behavior and ultimately on the economy.
On Tuesday, the Organization of the Petroleum Exporting Countries and Allies (OPEC+) will meet to discuss oil production policies for the new year. There is speculation that officials see less impact of the Omicron variant on oil demand. Since the new variant has only been discovered, it is not yet clear to what extent the hospitalization rate will increase.
Global Inflation Data
The Purchasing Managers’ Index (PMI) will be released this week in much of the world such as Europe and the U.S. This will be another important measure of economic activity.
The Consumer Price Index (CPI) and Producer Price Index (PPI) are also published by various countries. This week, South Korea will start, while the European Union and the Eurozone as a whole will publish it later this week.
Talks Between Joe Biden (USA) and Vladimir Putin (Russia)
U.S. President Joe Biden and Russian President Vladimir Putin are expected to speak on the phone Thursday. Tensions on the Ukrainian-Russian border continue.