The global markets are awaiting an eventful week. Investors will closely monitor the US inflation data. Additionally, Federal Reserve Chairman Powell’s presentation in the House of Representatives will be observed with great interest. As the battle against inflation continues worldwide, recession concerns remain on the agenda. During this time, President Trump’s possible actions that could escalate global trade wars are influencing the direction of the markets. Comments about the China-based artificial intelligence model DeepSeek showcasing high performance at lower costs are creating doubts about US dominance in the technology sector, leading to expectations of a global power struggle in this field. Trump’s preparations to impose tariffs on other major trading partners after China might revive inflationary pressures in the country and overshadow the gains the Federal Reserve (Fed) has made in combating inflation so far. Concerns persist about the mismatch between Trump’s policy directions and the future steps the Fed might take, while next week’s US inflation data release and Chairman Powell’s presentation to the House Financial Services Committee will be closely monitored by investors. All Eyes Turned on Inflation The inflation figures in the US will be announced on Wednesday, February 12 at 16:30. Headline inflation is expected to indicate 2.9 percent. Monthly inflation is forecasted to increase by 0.3 percent. In December, inflation rose to 0.4 percent monthly and 2.9 percent annually. Tariff Warning from Fed Officials The statements from Fed officials are being closely followed as well. Richmond Fed President Thomas Barkin has shown enthusiasm for more interest rate cuts this year but highlighted the uncertainty surrounding the effects of President Trump’s tariff, immigration, and regulatory policies. Chicago Fed President Austan Goolsbee mentioned that a robust growth, declining inflation, and full employment economy would allow the Fed to continue interest rate cuts, but uncertainties regarding tariffs and other policy changes require a slower approach. Boston Fed President Susan Collins reported expectations of tariffs impacting prices. Atlanta Fed President Raphael Bostic also indicated that their business connections plan to reflect increased costs due to tariffs in prices. Slowing Job Growth On the macroeconomic data front, the non-farm payroll figures, crucial for the direction of the Fed’s monetary policy, emphasized that despite a slower job growth in January, the labor market remains strong. Non-farm payrolls in the country grew by 143,000 in January, falling below expectations, while the unemployment rate decreased from 4.1 percent to 4 percent. The average hourly earnings, closely watched by the Fed, increased by 0.5 percent in January, exceeding expectations.