Global financial markets, including cryptocurrencies, face a pivotal week from January 12-16, 2025, packed with key economic events that will test economic resilience and shape monetary policy trajectories. The calendar is dominated by crucial U.S. inflation data and a concentrated schedule of Federal Reserve communications, setting the stage for potential market volatility.
The centerpiece events are the release of the U.S. Consumer Price Index (CPI) for December on January 13 and the Producer Price Index (PPI) on January 14. These reports will be scrutinized to see if disinflation trends continued through year-end 2024 and whether core inflation is moving toward the Fed's 2% target. The December CPI is particularly significant as it is the final major inflation reading before the Federal Open Market Committee's (FOMC) policy meeting on January 28-29.
Simultaneously, an unusually high number of Federal Reserve officials are scheduled to speak, reflecting the central bank's enhanced transparency efforts. Key speakers include Atlanta Fed President Raphael Bostic (three appearances), Richmond Fed President Thomas Barkin, and New York Fed President John Williams. Their remarks will provide insights into regional economic conditions, labor markets, and the Fed's balance sheet normalization strategy.
Additional U.S. data includes the Fed's qualitative Beige Book on January 14 and weekly jobless claims on January 15. Internationally, the Bank of Korea's interest rate decision on January 15 will serve as a bellwether for Asian monetary policy and export-dependent economies.
The week is further complicated by political developments, specifically former President Donald Trump's call for a 10% cap on credit card interest rates, which markets began reacting to on Monday. A U.S. Supreme Court ruling on tariffs is also expected, alongside the start of earnings season for major banks like JPMorgan and Goldman Sachs.
For crypto markets, which showed muted activity over the weekend, these macroeconomic events are key drivers. Bitcoin reclaimed the $92,000 level as Asian trading began on Monday, though it faces resistance at $94,000. Ether saw a similar uptick to $3,150, while altcoins like Solana (SOL), Cardano (ADA), and Monero (XMR) showed mixed but occasionally sharp performance. Analysts warn the confluence of politics, inflation data, and central bank commentary could lead to significant volatility across all asset classes.
