Americans Refuse To Stop Spending As Inflation Rises In Worrying Data
Friday's top-tier data release out of the US suggested the Fed has more work to do. Americans spent at a far brisker pace than expected last month, and inflation was hotter than anticipated, the government's personal income and spending update for April showed. I won't bury the lede. Core prices rose 0.4% from March, ahead of the 0.3% consensus. That pushed the YoY pace to 4.7%. Not to put too fine a point on it, but that's why the likes of Jim Bullard, Neel Kashkari and Lorie Logan have al
4 thoughts on “Americans Refuse To Stop Spending As Inflation Rises In Worrying Data”
Inflationary psychology in the consumer sector is difficult to overcome. Buy it now before the price goes up.
barring a debt crisis “resolution” selloff, a hawkish June rate hike seems likely imho…
The American consumer… Basically, un-killable.
As I said, the one problem is then to try and garner pity for “folks who don’t have $400 in savings”… Generally speaking, I am in the “economics isn’t a morality tale” camp, though I recognize that morality drives a lot of people thinking about economic policy so optics matter. But, here, even I go “at some point, you’re supposed to grow up and be a mature adult, capable of controlling yourself. Don’t come crying when the money runs out”.
Ah, the old fable about the ant and the grasshopper.