Prices
June 16, 2023
CRU Aluminum: LME Rallies as Fed Pauses Rate Hikes
Written by Matthew Abrams
The US Federal Reserve has taken some pressure out of the market by announcing a pause in interest rate hikes, leaving rates at 5% to 5.25% after more than a year of consecutive rate increases. The decision on Wednesday came a day after official figures showed US inflation was 4% – the lowest pace of increases in more than two years. The effects of the higher rates were starting to become apparent as both inflation and consumer demand falters heading into the middle of the year. The housing market has taken the biggest hit thus far, with both new housing starts and permits falling steadily as supply starts to build. This pause in rate hikes, however, do add more weight to the momentum of the second half of the year.
