US Retail Giants Face Inflation Test Amid Fed Rate Policy Uncertainty

US retail giants are facing an inflation test this week as they report their latest earnings, coinciding with the release of the Federal Reserve's July meeting minutes.

The results from Home Depot on Tuesday and Target and Lowes on Wednesday will provide insight into how businesses and consumers are handling high inflation rates above 3%.

Higher petrol prices and increased shipping costs could prompt people to shift or cut spending, with housing and household budgets being closely watched for signs of change.

The Fed's minutes from the July meeting, due on Wednesday, will also shed light on interest rate policy, following a decision to hold rates steady amidst concerns over inflation, the jobs market, and economic direction.