Reported 8 months ago
US retail sales in May grew by 0.1%, lower than the expected 0.3%, indicating a slowdown in the US consumer and economy. Chief US Economist Matthew Luzzetti from Deutsche Bank mentions that the Federal Reserve is looking at the possibility of cutting rates in the latter half of 2024. Despite the slowing economy, Luzzetti suggests that the current consumer spending is supportive, but the Fed ideally wants to see improved inflation, a stable labor market, and a resilient but slowing consumer. The labor market shows a mixed picture, with job gains remaining strong, income growth resilient, and consumers holding excess savings, although concerns about potential cutbacks exist. Fed officials continue to monitor data dependency and are open to a September rate cut if necessary.
Source: YAHOO