The Federal Reserve raised the federal funds rate by 0.25 percentage points at its September 16 meeting, as the year-over-year Consumer Price Index rose 3.7% in September, slightly hotter than expected. The FOMC meets two more times in 2026, on October 28 and December 9, so further hikes remain possible before year-end. Higher rates can slow inflation but also cool growth and lead consumers to spend less, with the greatest risk for retailers reliant on discretionary spending. Costco is seen as well positioned given its shopper base, as a June YouGov survey found 11% of Americans in households earning $150,000 or more do most of their food shopping there. Walmart, Target and Home Depot each have distinct strengths and vulnerabilities; a single 25-basis-point hike is unlikely to be decisive, but a sustained tightening cycle could separate winners from losers.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Fed Rate Decision Creates Diverging Fortunes For Costco ( NASDAQ : COST ), Walmart ( NYSE : WMT ) and Target ( NYSE : TGT )
Read the original on foreignpolicyjournal.com ↗
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