Global markets are anticipating an intense week. Investors will closely monitor US inflation data. Additionally, Federal Reserve Chairman Powell’s presentation to the House of Representatives will be carefully watched. While the fight against inflation continues worldwide, recession concerns remain on the agenda. In this process, any steps by US President Trump that could escalate global trade wars are affecting market direction. Comments indicating that the China-based artificial intelligence model DeepSeek performs at high levels with lower costs raise questions about US dominance in the technology sector and are expected to lead to a global power struggle in this area. Trump’s preparation to impose tariffs on other major trading partners of the US after China raises concerns that these actions could revive inflationary pressures in the country and shadow the gains the Federal Reserve has achieved so far in combating inflation. Concerns persist about the mismatch between Trump’s policies and the Fed’s future steps, and next week’s inflation data announcement in the US and Federal Reserve Chairman Powell’s presentation to the House Financial Services Committee will be closely monitored by investors. EYES TURN TOWARDS INFLATION US inflation figures will be announced on Wednesday, February 12, at 4:30 p.m. Expectations for headline inflation point to 2.9 percent. Monthly inflation is predicted to rise by 0.3 percent. In December, inflation rose by 0.4 percent monthly and 2.9 percent annually. TARIFF WARNING FROM FED OFFICIALS Statements from Federal Reserve officials are also closely monitored. Richmond Fed President Thomas Barkin stated that he is open to more interest rate cuts this year, but pointed out the uncertainty regarding the effects of President Trump’s policies on tariffs, immigration, and regulations. Chicago Fed President Austan Goolsbee expressed that after achieving solid growth and decreasing inflation with full employment, an economy would allow the Fed to continue interest rate cuts, but the uncertainty about the impact of tariffs and other policy changes requires a slower approach. Boston Fed President Susan Collins reported that the impact of tariffs on prices is expected. Atlanta Fed President Raphael Bostic also mentioned that their connections in the business world plan to pass on the increasing costs with tariffs to prices. SLOWING JOB GROWTH On the macroeconomic data front, the non-farm payroll data, which is crucial for the course of the Fed’s monetary policy, indicated a slowing job growth in January, although it revealed that the labor market’s strength remained intact. The non-farm payroll in the country increased by 143,000 people in January, falling below expectations, while the unemployment rate declined from 4.1 percent to 4 percent. The average hourly earnings, closely watched by the Fed, increased by 0.5 percent in January, surpassing expectations.