The Federal Reserve will release minutes on Wednesday from its latest policy meeting and potentially give investors more insight into the central bank’s fight against inflation. The Fed remains a main focus for investors as it continues raising interest rates to fight stubbornly high prices on everything from food to clothing.
The Fed has said that it could tone down the size of its rate increase, but that it may have to ultimately raise rates to a higher-than-expected level to reach its goal of taming painfully high prices. Its benchmark rate currently stands at 3.75 per cent to 4 per cent, up from close to zero in March.
Wall Street is concerned that the Fed could go too far in raising interest rates, which could hit the brakes hard enough on the economy to skid it into a recession. Inflation has been easing somewhat while key points of the economy, including consumer spending and employment, remain strong.
Investors don’t have much economic news to review this week, but some late earnings and corporate updates could provide more insight into inflation’s path and ongoing impact.
Carvana fell 14.2 per cent after saying it will slash its workforce by 8 per cent as inflation and higher interest rates squeeze the auto market.
Loading
Electronics retailer Best Buy and discount retailer Dollar Tree will report their latest financial results on Tuesday. Farming equipment maker Deere will report its results on Wednesday.
Inflation remains the main economic concern globally, but several other issues are hovering over markets.
China on Sunday announced its first new death from COVID-19 in nearly half a year as strict new measures are imposed in Beijing and across the country to ward against new outbreaks. China’s ongoing strict lockdown policies have been crimping economic growth in the world’s second-largest economy and stressing businesses.
Casino operator Wynn Resorts, which has a large footprint in China, fell 2.6 per cent. Las Vegas Sands slipped 4.5 per cent.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
