Fed Meeting In Focus Amid Uncertainty About Interest Rate Outlook

RTTNews | 536 days ago

(RTTNews) - The Federal Reserve's monetary policy meeting will be it the spotlight this week, with the central bank due to announce its latest interest rate decision on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and economic projections could have a significant impact on the outlook for rates.

Recent hotter-than-expected inflation readings have reduced optimism about the likelihood of the Fed's first rate cut coming in June.

CME Group's FedWatch Tool is currently indicating a 55.5 percent chance the Fed will cut rates by a quarter point in June but a 41.5 percent chance rates will remain unchanged.

The Fed's announcement is likely to overshadow several key housing reports this week, including this morning's report on homebuilder confidence in the month of March.

The report from the National Association of Home Builders is expected to show the housing market index came in unchanged in March after rising to 48 in February.

On Tuesday, the Commerce Department is due to release its report on new residential construction in the month of February.

Housing starts are expected to jump to an annual rate of 1.435 million in February after plunging to a rate of 1.331 million in January, while building permits are expected to rise to a rate of 1.500 million in February after falling to a rate of 1.470 million in January.

The National Association of Realtors is also scheduled to release its report on existing home sales in the month of February on Thursday.

Economists expect existing home sales to dip to an annual rate of 3.95 million in February after jumping to a rate of 4.00 million in January.

Reports on weekly jobless claims, Philadelphia-area manufacturing activity and leading economic indicators may also attract attention later this week along with remarks by Fed Chair Jerome Powell on Friday.

Tags: USD

U.S. Services Index Climbs To Six-Month High In August

Service sector growth in the U.S. accelerated by more than anticipated in the month of August, according to a report released by the Institute for Supply Management on Thursday. The ISM said its services PMI rose to 52.0 in August from 50.1 in July, with a reading above 50 indicating growth. Economists had expected the index to inch up to 50.5.

RTTNews | 1 day ago

U.S. Labor Productivity Surges 3.3% In Q2, Much More Than Previously Estimated

A report released by the Labor Department on Thursday showed labor productivity in the U.S. surged by much more than previously estimated in the second quarter of 2025. The Labor Department said labor productivity shot up by 3.3 percent in the second quarter compared to the previously reported 2.4 percent jump. Economists had expected the increase in labor productivity to be unrevised.

RTTNews | 1 day ago

U.S. Trade Deficit Widens More Than Expected As Imports Spike

With the value of imports spiking, the Commerce Department released a report on Thursday showing the U.S. trade deficit widened more than expected in the month of July. The Commerce Department said the trade deficit shot up to $78.3 billion in July from a revised $59.6 billion in June. Economists had expected the trade deficit to increase to $75.7 billion.

RTTNews | 1 day ago

U.S. Jobless Claims Rise More Than Expected To Two-Month High

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 30th. The Labor Department said initial jobless claims climbed to 237,000, an increase of 8,000 from the previous week's unrevised level of 229,000.

RTTNews | 1 day ago

U.S. Private Sector Job Growth Slows More Than Expected In August

A report released by payroll processor ADP on Thursday showed private sector employment in the U.S. increased by less than expected in the month of August. ADP said private sector employment rose by 54,000 jobs in August after jumping by an upwardly revised 106,000 jobs in July. Economists had expected private sector employment to rise by 65,000 jobs.

RTTNews | 1 day ago