Good Monday AM from your Hometown Lender,

No data again today but there will be tomorrow.

CPI comes out tomorrow before markets open and traders are starting to make guesses on what that report will show (bonds are flattish right now). Bond traders are finally heeding one of the market’s oldest lessons: Don’t fight the Fed.”

Investors are (eventually) getting on board with the Federal Reserve’s cautious rhetoric on rate cuts and dialing down their exuberance on the amount of easing this year. They’ve started pricing in that the Fed will carry out just four — or five at the most — quarter-point rate cuts in 2024, only slightly more than the three penciled in by policymakers and a shift from the end of last year, when futures traders were wagering on six such moves.

In advance of tomorrow’s report, Fed policy makers get the chance to address both sets of market players today as Michelle Bowman, Tom Barkin and Neel Kashkari kick things off.

Here is a recap of what’s on the calendar, this week.

Tuesday
The Bureau of Labor Statistics releases the consumer price index for January.
The National Federation of Independent Business releases its Small Business Optimism Index for January.

Thursday
The Census Bureau reports retail sales data for January.
The National Association of Home Builders releases its Housing Market Index for February.

Friday
The University of Michigan releases its Consumer Sentiment Survey for February.
The BLS releases the producer price index for January.

Please stay safe, healthy, and make today great!