The US is scheduled to release data on producer price inflation on Tuesday, which will be the highlight of the economic calendar.
High inflation is driven mainly by bottlenecks in the supply chain and those problems show no sign of easing and companies are still raising wages as they compete for workers, high inflation can may continue until 2022.
Labor Department data on Friday showed consumer prices rose 6.8% year-on-year in November, the highest level in more than 39 years.
Meanwhile, retail sales figures will be released on Wednesday, followed by data on industrial production and initial jobless claims on Thursday.
US stocks are back to record highs, after a sell-off triggered by concerns about the Omicron variant and the prospect of a faster tightening.
However, the market could be buoyed by signs that the Fed is growing more worried about inflation. Signs of a faster path to rate hikes could also spark fresh volatility.
Investors are also eager to hear the Fed's view on the potential impact of the Omicron variant on economic growth or inflation.
Mona Mahajan, senior investment strategist at Edward Jones, told Reuters the Fed meeting could bring more clarity to investors after a wave of volatility in recent weeks.
“It looks like the market has climbed two walls of anxiety: Omicron and the Fed,” she said.
The BoJ will wrap up its two-day policy meeting on Friday, and it looks set to keep monetary policy extremely accommodative, but still debating whether to extend its emergency pandemic relief program beyond that. current plan or not. This plan will expire in March 2022.
Turkey's central bank will meet on Thursday to decide whether to cut interest rates at the request of President Recep Tayyip Erdogan, amid higher inflation (currently over 21%) and weakening lira.
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