Fed interest rate cut may boost Home Depot sales, despite company forecasting a drop

From CNBC: 2024-08-13 14:01:15

Home Depot is closely monitoring the Federal Reserve’s potential interest rate cut. With homeowners holding off on projects due to higher rates, an interest rate reduction could boost sales for the company. Despite beating quarterly earnings expectations, Home Depot forecasts a 3-4% drop in comparable sales. The Fed hints at a possible rate cut in September, pending economic data. Fresh data shows a 0.1% rise in the producer price index for July. CEO Ted Decker notes that lower mortgage rates prompt increased housing activity. The company is cautious due to consumer uncertainty amid economic and geopolitical concerns. Even with a rate cut, customers may remain cautious until economic uncertainties are resolved.



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