Lumber prices rise as Fed signals support construction demand

Lumber futures climbed above $550 per thousand board feet on Thursday, supported by a dovish shift from the U.S. Federal Reserve that improved the outlook for construction-related demand. Markets reacted to the Fed’s widely expected 25 basis point interest-rate cut, alongside comments from Chair Jerome Powell that led traders to price in further monetary easing next year. Lower borrowing costs are expected to ease pressure on mortgage rates, potentially reviving homebuilding and renovation activity. The prospect of easier financial conditions has increased incentives for builders and distributors to rebuild inventories, particularly as supply remains ...