Global markets are anticipating a hectic week ahead. Investors will closely monitor the US inflation data. Additionally, Federal Reserve Chair Powell’s presentation in the House of Representatives will be carefully watched. As the fight against inflation continues worldwide, recession concerns remain on the agenda. During this process, any steps taken by US President Trump that could escalate global trade wars are influencing market direction. Comments suggesting that the China-based artificial intelligence model DeepSeek performs at high levels with lower costs raise questions about the US’s dominance in the technology field, leading to expectations of a global power struggle in this area. Trump preparing to impose tariffs on other major trading partners after China has fueled concerns about rekindling inflationary pressures in the country and overshadowing the Fed’s gains in combating inflation so far. While worries persist about the potential mismatch between Trump’s policies and future moves by the Fed, next week’s inflation figures and Federal Reserve Chair Powell’s presentation to the House Financial Services Committee will be closely followed by investors. All Eyes on Inflation US inflation figures are set to be announced on Wednesday, February 12, at 4.30 p.m. The headline inflation expectations indicate 2.9%. It is anticipated that monthly inflation will increase by 0.3%. In December, inflation rose to 0.4% monthly and 2.9% annually. Tariff Warning from Fed Officials Remarks from Fed officials are also closely monitored. Richmond Fed President Thomas Barkin has expressed openness to more interest rate cuts this year but pointed out uncertainty regarding the effects of President Trump’s administration’s tariff, immigration, and regulatory policies. Chicago Fed President Austan Goolsbee stated that a strong economy with robust growth and falling inflation, along with full employment, would allow the Fed to continue lowering rates, but uncertainty about the impact of tariffs and other policy changes requires a slower approach. Boston Fed President Susan Collins noted the expected impact of tariffs on prices. Atlanta Fed President Raphael Bostic reported that their business contacts planned to pass on the increasing costs associated with tariffs to prices. Slowdown in Employment Growth In terms of macroeconomic data, non-farm payroll data, which is crucial for understanding the course of the Fed’s monetary policy, indicated a slowdown in employment growth in January, even though the labor market continued to show strength. Non-farm payrolls in the country increased by 143,000 people in January, falling below expectations, while the unemployment rate decreased from 4.1% to 4%. Average hourly earnings, closely watched by the Fed, increased by 0.5% in January, exceeding expectations.