In some negative news for the US economy, it was reported today that US consumer prices remained unchanged in November as declines in energy and food prices held down overall costs. The core inflation in the economy was up 2 percent over the last 12 months ending in November. It is important to point towards the fact that it was the fastest pace in more than a year and just what the Federal Reserve wants to see before it goes ahead with its interest rate hike at its December meeting. According to a report released by the US Labour department, consumer prices remained flat during the month of November after witnessing a modest 0.2 percent increase in October.
It was also reported today that US homebuilders are feeling slightly less confident about their sales prospects in the coming months, though they remain positive overall that the housing market would continue to improve next year. According to a report released by the National Association of Home Builders/Wells Fargo, it was stated that the sentiment index slipped to 61 this month as compared to a reading of 62 during the month of November. It is important to point towards the fact that a reading above 50 is indicative of builders viewing sales conditions as good, rather than poor.
All eyes would be on the outcome of the Federal Reserve meeting scheduled to end tomorrow with many expectations that the central bank would hike interest rates for the first time in close to a decade. Many analysts believe a rate hike could hurt the housing market and could impact financial markets. A rate hike would be seen as a huge positive for the dollar which continues to surge higher against global currencies at the moment. Many expect a modest 0.25 percent hike by the Federal Reserve.