Following the Federal Reserve’s decision to keep interest rates stable, Federal Reserve Chairman Powell made critical statements, shifting market focus to key data. Two critical data points regarding the US construction sector have just been released. The US Housing Price Index came in above expectations.
FED Keeps Policy Interest Rates Stable
The Federal Reserve’s interest rate decision, announced on September 20 at 9pm Turkish time, had become the focal point of markets. The strongest expectation in the markets was that the Fed would keep its policy interest rates stable.
Indeed, the Fed kept its policy interest rates stable in its September meeting, in line with expectations. Following the announcement of the interest rate decision, Federal Reserve Chairman Jerome Powell spoke to the press in a live broadcast, making critical statements about the next Fed meeting and emphasizing the potential need for additional interest rate hikes in the coming months.
Powell stated that inflation is still well above the target and that there is a long way to go to achieve the 2% target. Powell underscored that they would do everything in their power to reach the inflation target and hinted that interest rate hikes may continue in the coming months if necessary.
Powell stated in his remarks that data will be considered in the next two Fed meetings and noted that there is a majority in favor of further interest rate hikes among Fed members. Additionally, the Fed Chairman pointed to macroeconomic indicators and critical data for the next Fed meeting’s interest rate decision.
Two Critical Data Points Released for the US Construction Sector
Following Federal Reserve Chairman Jerome Powell’s statements, market attention turned to critical data points for the next interest rate decision by the Fed. Two critical data points regarding the US construction sector have just been released.
While construction permits fell below expectations, the housing price index came in above expectations. Construction permits were reported below expectations at 1.541M, while the Housing Price Index for July increased by 0.8% on a monthly basis. The expectation for the US Housing Price Index was 0.5%.
- US Construction Permits: 1.541M (Expectation: 1.543M Previous: 1.443M)
- US Housing Price Index (Monthly) (July): 0.8% (Expectation: 0.5%)
