Both jobs growth and consumer confidence in the US is much better than the financial markets would have you believe.
Fed chair Jerome Powell has repeated his guidance that rate rises of a similar 50 basis point magnitude will be on the table at their next two meetings, later this month and in July.
America’s big retailers have provided a range of insights into the health of the US consumer of late. At the Target super store in Washington DC’s Colombia Heights, airconditioning technician Walter Argueta said he was still spending a lot despite noticeably higher inflation.“I am spending more now not because I want to buy more but because it’s more expensive - everything is going up,” Mr Argueta said.Advertisement
Both Ms Wagner and her friend Kaitlyn Anderson were shopping for cosmetics, which, along with perfumes and bath products, have been one consumer category to buck the inflationary trend. Prices in this area have shrunk 0.5 per cent in the last 12 months. Next year could be bumpier, with the bank expecting overall consumer spending to slow in the first half before contracting in the fourth quarter, driven by lower spending on goods.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
To avoid ‘historic shellacking’ in midterms, Biden is promoting a sunny view of US economyMuch of America does not seem to be buying the optimistic vision that Biden and his team are selling
Read more »
Rocky markets mask a super cycle in the US dollarBy one measure, the greenback’s rally has eclipsed the level achieved at the height of the dotcom bubble two decades ago.
Read more »
Baby formula factory linked to contamination, US shortages reopensThe company that runs the largest baby formula factory in the US has reopened its plant, but consumers may be waiting months before supply levels return to normal.
Read more »
US supports international inquiry into war crimes in Ukraine – as it happenedLocal governor says Ukrainian military has ‘pushed back’ Russian forces in battle for control of the city
Read more »
Tiananmen anniversary: US hails the ‘brave’ 33 years on as Hong Kong warns against gatheringsUS ‘will not forget June 4’, says Blinken, while Taiwain set to be only part of Chinese-speaking world where public commemorations permitted
Read more »