Weekly Transportation Update: The Fed cuts the target federal funds rate by half a point

In recent economic news, the Federal Reserve has cut interest rates by half a point, aiming to stimulate growth. Manufacturing output showed signs of recovery in August, while retail sales remained stable. The inventory situation saw little change in July. Housing starts experienced a significant increase in August, although sales of existing homes are at a near 14-year low. Mortgage rates have dropped to their lowest levels in two years, contributing to a decrease in weekly initial jobless claims. Diesel prices are the lowest since October 2021, and truck spot rates have reached their lowest since July 2020. The Surface Transportation Board (STB) is holding a two-day hearing focused on rail growth, while East and Gulf Coast ports face the threat of a strike. Additionally, intermodal transport has driven a year-over-year increase in rail traffic.