8 hrs ago
Markets Brace for Federal Reserve Rate Decision Amid Inflation
Investors are waiting for the Federal Reserve to decide whether to raise interest rates.
The decision is scheduled for Wednesday afternoon.
Recent jobs and inflation numbers have made a rate increase seem more likely.
Much of that possibility is already reflected in financial-market prices.
Investors will pay close attention to what the Federal Reserve says about future decisions.
They will also study new forecasts for growth, inflation, and interest rates.
Other reports will show how consumers, factories, and the housing market are performing.
Higher oil prices could make fuel, transportation, and other goods more expensive.
The Federal Reserve is scheduled to announce its interest-rate decision at 2 p.m. ET on Wednesday.
Stronger employment data and firm inflation readings have increased expectations of a possible rate increase.
Investors will focus on the policy statement, Chair Kevin Warsh’s press conference, and updated economic projections.
Retail sales, housing, manufacturing, employment, and housing-market data are due throughout the week.
Oil prices have risen above $100 a barrel amid Middle East tensions, raising concerns about renewed inflation pressure.
- Who
- The Federal Reserve, Chair Kevin Warsh, investors, and companies reporting quarterly results.
- What
- Markets are preparing for the Federal Reserve’s monetary-policy decision and a possible interest-rate increase.
- Where
- The decision concerns United States monetary policy, while the market and economic data focus on the United States.
- When
- The decision is scheduled for Wednesday, September 16, at 2 p.m. ET, followed by the press conference at 2:30 p.m. ET; other economic data are due from September 15-18.
- Why
- Stronger employment data, firm inflation readings, and rising oil prices are influencing expectations about interest rates and inflation.
Key facts
- Rate decision
- The Federal Reserve will announce its decision Wednesday at 2 p.m. ET.
- Press conference
- Kevin Warsh’s press conference is scheduled for 2:30 p.m. ET.
- Key data
- Retail sales, housing starts, industrial production, jobless claims, and leading indicators are scheduled for release.
- Oil prices
- Crude oil prices have moved above $100 a barrel amid escalating Middle East tensions.
- Friday market close
- The S&P 500 rose 0.9% to 7,656.98, while the Dow Jones Industrial Average and Nasdaq composite each gained 1%.
- Scheduled earnings
- Dave & Buster's, Lennar, Carnival, and VinFast are scheduled to report quarterly results.
Sources
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