USD interest rate to rise for the first time in over nine years, The Fed have about 30 days left in the stretch of economic data releases before the FOMC meeting on September 16 and 17, when many economists expect the Federal Reserve could raise rates for the first time in over nine years.
According to latest economic data, So far this month the jobs report, retail sales numbers and industrial production figures have been solid enough to keep a rate hike next month on the cards. Still inline through the target
For sure it's largely because of what these reports have shown us about the state of the US consumer. According to The Fed last statement, the Fed remarked that "growth in consumer spending has been moderate." And while not yet blockbuster, the consumer is giving the Fed more of what it needs to raise rates next month.
In the first quarter, the US economy grew by a tepid 0.6% and the first estimate of second-quarter growth came in at 2.3%, boosted by consumers spending data
As we knew, Consumption makes up over two-thirds of Gross Domestic Product, and so reluctant spenders do not bode well for economic growth. Earlier in the year, economists had anticipated a boost in spending from the supposed windfall consumers got in savings from lower oil prices. It turned out that instead of splurging, consumers stashed the extra money away as the personal savings rate increased.
Two weeks ago, some of the details in the data from the last week have indicated to economists that consumer spending is well on the rebound. This is a good sign
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