Households Are Not Cooling Down
By now, consumers were expected to reduce their spending for several reasons. Interest rates have risen, inflation remains high, pandemic-related savings have dwindled, and the labor market is showing signs of cooling.
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Consumer Spending Eases
In October, Americans curtailed their spending, and inflation subsided as the economy shifted gears from a vigorous third quarter, according to analysts.
Fed Chair Powell Signals Further Rate Cuts
Federal Reserve Chair Jerome Powell confirmed on Monday that the central bank plans to continue lowering interest rates in a bid to sustain economic growth and promote hiring.
America's Wallet
Despite inflation, Americans have more money in the bank than in 2019 and only slightly more credit card debt relative to income. However, they don't necessarily feel better off than they did before the pandemic, inflation, and rising interest rates.
Spending Doesn't Cool Down
Despite the economic uncertainty, Americans are continuing to spend, challenging the expectations of many business leaders about consumer behavior in slower economic times.