Trump-Xi Summit, Powell Fed Chair Term End Shape Week's Macro Events

Major macroeconomic events will unfold this week, including a US-China summit on May 14 (Korea time) and the end of Federal Reserve Chair Jerome Powell’s term on May 16, according to the source article. Both developments are expected to significantly influence global markets.

US-China Summit: May 14

President Donald Trump and Chinese President Xi Jinping will hold a summit in Beijing on May 14 (Korea time). Experts anticipate Trump will press China on its support for Iran and engage in negotiations over rare earth export controls. The Middle East conflict has been identified as a major source of recent inflation, and rare earth negotiations carry implications for semiconductor and advanced technology industries, suggesting the summit could have substantial effects on global macroeconomic conditions.

Powell’s Fed Chair Term and Succession

Powell’s tenure as Federal Reserve Chair will end on May 16 at 1 PM (Korea time). He has led the Federal Reserve for eight years since 2018, succeeding Janet Yellen. After his term as Chair ends, Powell will retain his Board seat, with his Board term running through January 2028.

Kevin Warsh, the nominated successor for Fed Chair, is currently undergoing confirmation proceedings. The market expects Warsh to implement rate cuts upon taking office, according to the source.

Economic Data Releases

May 12 – April Consumer Price Index (CPI)

The April CPI will be released at 9:30 PM (Korea time). This is the second CPI reading to reflect the Middle East conflict variable (the first was March’s data). If the figure exceeds expert expectations, inflation concerns could depress risk asset prices.

May 13 – April Producer Price Index (PPI)

The April PPI will be released at 9:30 PM (Korea time). This indicator measures wholesale prices for products sold by US producers. If it exceeds expectations, inflation concerns could trigger a decline in risk asset prices.

May 14 – April Retail Sales and Weekly Jobless Claims

Both releases are scheduled for 9:30 PM (Korea time).

April retail sales measure total sales volume in the US retail market. A slowdown in consumption would indicate reduced inflation pressure.

Weekly jobless claims stood at 200,000 last week, an increase of 10,000 from the prior week. However, continuing jobless claims (those filing for more than two weeks of benefits) totaled 1,766,000 last week, down 10,000 from the prior week. The decline in continuing claims indicates the US labor market remains resilient.

May 16 – Powell Fed Chair Term End

Powell’s term as Federal Reserve Chair concludes at 1 PM (Korea time).