Important data releases are coming one after another this week, and Powell may continue to "hawk" in Congress.

, Federal Reserve Chairman Powell will head to Capitol Hill this week to deliver semi-annual monetary policy testimony to the House Committee on Wednesday and the Senate panel on Thursday. The Fed chair and almost all of his colleagues have indicated in recent weeks that they have the ability to be patient in deciding when to cut interest rates, given the potential strength of the U.S. economy. Powell is expected to further emphasize the reluctance to cut rates, especially after the latest inflation data showed continued price pressures. In an interview on February 5th, Powell said, "The danger of acting too soon is that the job is not finished, and the good data over the past six months is not necessarily a true indicator of inflation trends." Recent data in the past weeks showed a slight increase in inflation last month, confirming this cautious approach. But this may not satisfy Democrats, who are concerned about how the path of interest rates will affect the November presidential election and lower voter turnout. They are expected to press the Fed chair to explain why officials have made such significant progress in controlling inflation, yet still maintain borrowing costs at such high levels, risking damage to the economy. The key data this week will be the monthly employment report released on Friday. Economists expect job numbers to slow to 200,000 in February, down from 353,000 in the previous month, which was the highest in a year. The unemployment rate is expected to remain at 3.7%, while wage growth may cool off. On Wednesday, the Fed will release the Beige Book, a survey of regional business contacts nationwide. Other data to be released in the coming week include the February services Purchasing Managers Index, as well as January trade balance and job openings data. Economists Anna Wong, Stuart Paul, Eliza Winger, and Estelle Ou stated, "It is expected that Powell will maintain a tough stance during his semi-annual congressional testimony, sending a signal to the market that the Fed is not eager to cut rates. If this leads to tightening financial conditions, it will continue to put pressure on the economy and increase the likelihood of additional lag effects from monetary policy." In addition, other political events such as the UK budget will also be of interest, as well as interest rate decisions in the Eurozone and Canada. Asia: With the impact of last year's subsidies gradually fading, Tokyo's inflation data for February may show a strong increase. This could intensify bets on a rate hike by the Bank of Japan in March, as the Japanese labor market has already tightened. Bank of Japan board member Junko Nakagawa will provide the latest signals from the central bank on Thursday. Australian economists will adjust economic growth estimates on Tuesday after the release of the current account data. GDP figures are expected to show continued moderate growth. Revised South Korean economic growth data is expected to remain unchanged, but consumer price data to be released on Wednesday is expected to show inflation heating up again. Malaysia is expected to maintain its interest rate at 3% on Thursday. Europe, Middle East, Africa: In the UK, Chancellor of the Exchequer Sunak will announce the government budget on Wednesday, possibly the last one before the general election this year. Speculations in recent days have centered on potential giveaways to voters, as well as ending the "non-dom" status used by wealthy foreigners. Sunak may have limited room for maneuver on tax cuts. Last Saturday, the UK Treasury outlined plans to boost productivity, including investing in technology to save thousands of hours of police time spent on administrative duties; upgrading MRI scanners to provide faster results for patients; and increasing the use of artificial intelligence. Sunak, in an interview on Sunday about his fiscal plans, said, "I do want to move towards a low-tax economy, responsibly wherever we can." "I want to show a path towards that." Borrowing is expected to be 11 billion lower than anticipated. In the Eurozone, the European Central Bank decision on Thursday will be a major event. Policy makers will release their first-quarter forecasts, which may indicate a move closer to a rate cut in the coming months. Higher-than-expected inflation data released last Friday may still give officials reason to be cautious, as they await data on wage agreements to ensure that the full pace of consumer price rises is not reflected in wages. Eurozone data will reflect the manufacturing strength of major economies. Industrial data from Germany, France, and Spain will be released. The Swiss National Bank governor has recently announced his resignation later this year. Switzerland will release inflation data on Monday. Economists expect Switzerland's inflation rate to slow to 1.2%, the lowest since 2021. Polish monetary officials are expected to keep the interest rate unchanged at 5.75% on Wednesday, while Serbian monetary officials will announce whether they choose to maintain borrowing costs at 6.5%. Analysts expect data to be released on Monday in Turkey will show that the inflation rate in February accelerated to 66%, in line with the forecasts of the Central Bank of Turkey. Economist Selva Bahar Baziki said, "Turkey's inflation problem is worsening, despite the central bank's aggressive tightening policies reaching their limits." "We expect the central bank to hold steady until the last quarter of this year, but the upside risk of inflation still exists, which could lead to further rate hikes."