Markets on High Alert as Fed Hike Looms and Global Central Banks Weigh In

Financial markets are bracing for a potential Federal Reserve interest rate hike next week, which could take the federal funds target range to 3.75%-4.00%. Analysts expect US demand data to remain strong, with consumer spending holding up and retail sales projected to rebound by 0.7% in August.

Housing indicators are showing weakness due to elevated mortgage rates and affordability constraints, which may keep August housing starts under pressure.

Overseas, central banks are also making decisions that will impact markets. The Bank of Japan is expected to raise interest rates by 25 bps, while the Bank of England is forecast to leave policy unchanged but retain a hawkish tone.