What will affect the markets today? | June 15, 2022

Yesterday, US stock indexes ended the trading session with a decline – market participants are waiting for the results of the two-day meeting of the US Federal Reserve System. It is expected that today the regulator will announce its decision on the interest rate and give comments on what may happen this summer.

Earlier, the Fed signaled a half-point rate hike, but today most analysts expect the central bank to act even more harshly and raise the base rate by three-quarters of a point in an attempt to tame inflation.

A significant increase in consumer prices in the country has long pushed the Fed to take more decisive action. U.S. consumers are facing rising food and fuel prices: gasoline prices have risen above $5 per gallon.

So, what will determine the dynamics of the market on Wednesday? It is worth paying attention to three events.

The Fed's decision on the rate

The decision of the Federal Open Market Committee (FOMC) will be announced at 18:00  GMT, followed by a press conference by its head Jerome Powell. It is expected to raise the issue of the future pace of rate increases.

Retail sales

Data on retail sales in the country for May will also be published on Wednesday at 12:30 GMT. Analysts expect monthly growth of 0.2% compared to the 0.9% rise in April. 

Housing Market Index

The NAHB housing market index, which shows the level of current and future home sales, will be published at 14:00 GMT. The forecast assumes an indicator at the level of 68 points, which is slightly lower than the May value of 69. Experts note that there are already signs of a slowdown in the housing market, and sales of ready-made housing will fall this year due to an increase in mortgage rates and a sharp rise in house prices.