Equities began the week on stable footing despite the previous week's large decline and the upcoming FOMC announcement on Wednesday. The Fed is expected to raise interest rates by 75 basis points on Wednesday and provide an outlook for the future of Fed policy. It is largely believed the Fed will continue to raise rates into the beginning of 2023 but at a much slower pace than what it has set so far. The risk is that inflation data will continue to accelerate as it has and push the Fed into ramping its posture once again.

On the economic front, the NAHB home builders survey declined to a new low as demand and traffic dry up. The news is only the latest in a string of poor housing data that points to a major contraction in the industry and one that will have rippling effects throughout the economy. Also on tap this week is a read on building permits and housing starts as well as existing home sales and the Index of Leading Indicators.