Fed Will Be Watching for April Trade Report

The only macro-economic data warranting the attention of economists and investors this week are April international trade figures due out Tuesday. A surge in demand for U.S. exports could rattle Federal Reserve governors who will meet June 28 to decide whether to hike interest rates again. Economists polled by Reuters are looking for the trade deficit to narrow to $29.29 billion, versus $30.18 billion in March. Increased demand in exports helps fuel domestic growth, something that the U.S. central bank is loath to see. “If the demand for exports is strong, that might put the Fed in the unfortunate position of having to reduce domestic growth even further,” said Pierre Ellis, senior economist at Primark Decision Economics. The U.S. central bank in the last year has boosted its key Fed funds rate by 1.75 percentage points in the last year--its highest level in a nearly a decade.