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 We are in a bit of no person’s land today as we are in between key economic data points for March and only a handful of less-than-market-moving earnings reports on deck today. Coming off yesterday’s big data dump, it will be a day of catch-up for the Atlanta Fed’s GDPNow model, which rose to 2.8% for the March quarter on April 1.Given what we saw yesterday with the shares of Ulta Beauty (ULTA), we will want to keep our eyes and ears open for earnings pre-announcements during the current quiet period. But odds are the Fed will continue to have a large presence as the market grapples with rate cut questions. Following comments from Fed Chair Powell yesterday that policymakers will wait for clearer signs of lower inflation before cutting interest rates – no surprise if you’ve been following the data as we have, the market will likely focus on comments from the six Fed officials today. 

While Powell set the tone, we will want to see if any of those six have altered their views following this week’s economic data, joining a more outspoken Atlanta Fed President Raphael Bostic. Yesterday, he shared that he sees only one rate cut occurring in the December quarter – a very different picture compared to what we see in the CME FedWatch Tool.  With the data published so far this week and what it showed for inflation, at a minimum the Fed has to be contemplating fewer rate cuts than the three it penciled in with its March economic projections.  What the market will be looking to see is if the potential figure is closer to one or none. Given its unofficial role as a cheerleader for the economy, the Fed is likely to tow the party line of needing to see more “good data”, letting the market down slowly if that doesn’t happen. As each of the five Fed officials who speak during trading hours today make their comments, watching the 10-year Treasury yield and dollar could give us a read on the market’s reaction.  More By This Author:ADP Jobs Data, March Service PMs, Powell, And The Fed HeadsWhy Earnings Growth Will Matter As The Market Melts Up Further A Swiss Surprise, Micron’s Outlook, Flash PMI Data Ahead