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The good economic news just keeps rolling in: The Commerce Department reported today that in March consumer spending saw its biggest one-month increase in over nine years!
U.S. consumer spending roars back, but inflation tame - Reuters
EXTRACT:
Higher interest rates, of course, put a big crunch on the federal budget because they force the government to pay more on the interest on the national debt. Higher interest rates also make consumer borrowing more expensive. Virtually no one denies that economic growth would have been even stronger over the last six months if the Fed had not started hiking interest rates in mid-2017 and through 2018.
U.S. consumer spending roars back, but inflation tame - Reuters
EXTRACT:
The surge in consumer spending reported by the Commerce Department on Monday sets a stronger base for growth in consumption heading into the second quarter after it slowed sharply in the first three months of the year.
It further allayed concerns about the economy’s health, which had been brought to the fore by a temporary inversion of the U.S. Treasury yield curve last month. Tame inflation, however, supported the Federal Reserve’s recent decision to suspend further interest rate increases this year.
It further allayed concerns about the economy’s health, which had been brought to the fore by a temporary inversion of the U.S. Treasury yield curve last month. Tame inflation, however, supported the Federal Reserve’s recent decision to suspend further interest rate increases this year.
Higher interest rates, of course, put a big crunch on the federal budget because they force the government to pay more on the interest on the national debt. Higher interest rates also make consumer borrowing more expensive. Virtually no one denies that economic growth would have been even stronger over the last six months if the Fed had not started hiking interest rates in mid-2017 and through 2018.
