U.S. consumer spending soft, inflation benign as economy slows

[McRocket]

'U.S. consumer spending barely rose in January and income increased modestly in February, suggesting the economy was fast losing momentum after growth slowed in the fourth quarter.

The report from the Commerce Department on Friday also showed price pressures muted in January, with a measure of overall inflation posting its smallest annual increase in nearly 2-1/2 years. The Federal Reserve last week brought its three-year campaign to tighten monetary policy to an abrupt end.

The U.S. central bank abandoned projections for any interest rate hikes this year after increasing borrowing costs four times in 2018, in a nod to the slowing economy, low inflation and rising headwinds to growth. The economy is losing steam as the stimulus from $1.5 trillion in tax cuts as well as increased government spending dissipates.'

U.S. consumer spending soft, inflation benign as economy slows | Reuters

No wonder Kudlow practically begged the Fed to drop rates .50 today.

White House advisor Larry Kudlow says Fed should 'immediately' cut rates

 

[Sunni Man]

Historically the month of January (right after Christmas) and February (cold weather) and March (right before taxes due) see an economic slowdown.

Then a robust economy uptick during the spring and summer months. ...

 

[Marion Morrison]

Historically the month of January (right after Christmas) and February (cold weather) and March (right before taxes due) see an economic slowdown.

Then a robust economy uptick during the spring and summer months. ...

That only makes sense; It's tax time, Christmas still needs recovered from..
Plants aren't growing.

 

[depotoo]

Nothing abnormal. It was also during the shutdown.

 

[iamwhatiseem]

For what it is worth, I work in a bell weather industry that serves businesses, government and organizations.
We are up 17% this year. We have been in steady increase since late last summer.
Businesses are spending money again. Over 50% of companies in our industry went out of business since 2009. Almost as bad as homebuilders.
Most of the growth has been from existing clients.
I am not seeing the doom and gloom.

 

[Dekster]

Historically the month of January (right after Christmas) and February (cold weather) and March (right before taxes due) see an economic slowdown.

Then a robust economy uptick during the spring and summer months. ...

historically mortgage rates do not continue to trend down while the fed rates are steadily rising.