Consumer spending saw a solid rise in July, indicating strong economic health as the Fed navigates potential rate cuts while also grappling with an increasing unemployment rate.
The Commerce Department's report highlighted a moderate increase in prices in July, suggesting inflationary pressures may be easing, which is crucial as the Fed contemplates its next move.
While the unemployment rate reached its highest in three years at 4.3%, the slowdown is attributed mainly to reduced hiring rather than mass layoffs, supporting consumer spending resilience.
Economist Pooja Sriram noted, 'The data suggest inflation is on track to hit the Fed's 2% target,' indicating possible optimism in the central bank's outlook for the year.
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