Retailers Face Stubborn Inflation as Fed Minutes Unveil Rate Policy Discussion

Wall Street is gearing up for a week of key financial updates from major retailers and the Federal Reserve. On Tuesday, Home Depot will release its latest earnings report, followed by Target and Lowe's on Wednesday, and Walmart on Thursday. These results will provide valuable insights into how businesses and consumers are coping with persistent inflation.

The rate of inflation remains above 3%, while oil prices surged due to the ongoing US-Iran conflict, pushing up gasoline costs. This could lead households to adjust their spending habits or cut back on discretionary expenses.

Home Depot's and Lowe's results may offer a glimpse into the state of the housing market, revealing whether people are investing more in home improvements despite rising costs. Target and Walmart's reports will provide further information about how households are budgeting and allocating resources.

The Federal Reserve will also release minutes from its July meeting on Wednesday, offering more details about the central bank's interest rate policy. In July, the Fed maintained steady interest rates amid concerns over inflation, job market performance, and economic direction. However, three officials dissented in favor of higher rates during the meeting.