Investing.com -- Stocks wobbled after the Federal Reserve kept interest rates steady as expected but signaled another rate increase might be coming as it continues to work on getting inflation back to its 2% target rate.
The Fed is keeping another, 12th, rate hike in its pocket, maintaining its forecast for rates to peak at 5.5% to 5.75% this year, or 5.6% at the midpoint. As of now they are at 5.25% to 5.5%. The projections were part of the Summary of Economic projections that accompanied the monetary policy statement.
But the central bank is committed to continue fighting inflation and signaled it will keep rates higher for longer. Fed members see the benchmark rate at 5.1% next year, which suggests just two rate cuts in 2024. Previous projections had four rate cuts coming.
Higher energy prices could be one factor that frustrates the Fed's inflation fight. On Wednesday, Fed Chair Jerome Powell told reporters "we are well aware that if energy prices increase and stay high, that will have an effect on spending, and it may have an effect on consumer expectations of inflation."
The potential for a shutdown of the federal government if lawmakers are unable to pass a temporary funding bill to keep the lights on is also weighing on sentiment. Lawmakers have until Sept. 30 to strike a deal, though it has been hard for GOP leaders in the House to find consensus among caucus members.
Here are three things that could affect markets tomorrow:
1. Darden Restaurants earnings
Darden Restaurants Inc (NYSE: DRI ), owner of the Olive Garden and other chains, is expected to report earnings per share of $1.73 on revenue of $2.7 billion.
2. Rite Aid earnings
The retail pharmacy chain Rite Aid Corporation (NYSE: RAD ) is expected to report a loss per share of $1.47 on revenue of $5.56 billion.
3. Existing home sales
Amid an ongoing housing demand and supply imbalance, existing home sales for August are expected to be 4.1 million. The data are due out at 10:00 ET (14:00 GMT).
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.