While investors are expecting the Fed to launch more quantitative easing measures to boost the market sentiment, in analysts’ opinion, Bernanke is likely to urge the U.S. Congress to take action this week and the Fed’s policy stance perhaps will set the tome for the U.S. stock market trends during the remainder of this summer.
According to the schedule, Bernanke will go to the U.S. Congress to participate in the semi-annual economic hearing. In accordance with the schedule, Bernanke will first participate in the United States Senate hearing on Tuesday; and participate in the U.S. House Financial Services Committee hearing on Wednesday. Mesirow Financial chief economist Diane Swonk said that Bernanke will slam the fiscal cliff plan, and this will be his necessary work, because the plan has impacted the U.S. economy recovery.
Besides the Fed’s movements, a number of macro-economic data are scheduled to be released this week, which will also affect investors’ decisions, including the latest retail sales data, consumer price index and housing market data. In addition, investors will also pay attention to the earnings reports of listed companies. According to the schedules, Coca-Cola (KO), American Express (AXP), Bank of America (BAC), Microsoft (MSFT), IBM (IBM) and General Electric (GE) and other corporate giants will release their latest financial statements this week.
Analysts believe that the latest financial statements of listed companies will become the important evidence to judge whether the U.S. economic growth has slowed down, but Bernanke will set the tone for market trends in the remainder of this summer at the hearing of the U.S. Congress. The Fed previously has not taken a stand over the issue that whether to launch a new round of quantitative easing policy.