Breitbart Business Digest: Fed Cuts May Have to Wait Until After the Election

Breitbart Business Digest: Fed Cuts May Have to Wait Until After the Election


Consumer Spending Is Smothering Rate Cut Hopes

The idea that the Federal Reserve might pare back rates this year is becoming increasingly threadbare, a testament more to wishful thinking than to any discernible reality.

The Bureau of Economic Analysis said this week that nominal personal income rose 0.3 percent in February from the prior month. Spending surged a vigorous 0.8 percent month-on-month. Even after adjusting for inflation, real spending rose 0.3 percent, laying to rest any lingering apprehensions regarding a potential retail malaise seeping into the broader contours of consumer expenditure.

On the ledger of expenditures, goods found a prop in the revitalized auto sales sector, while other categories exhibited enough vitality to support the idea that the rotation out of goods spending

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