The Federal Reserve raised interest rates for the first time since 2018, with six more rate hikes planned for this year. The central bank’s tightening could have a considerable impact on U.S. borrowers and consumer spending trends moving forward, experts say. U.S. consumers could be challenged by a broad array of “brisk headwinds that only seem set to intensify” in the coming months, warns Scott Anderson, the chief economist at Bank of the West. Consumers are beginning to adapt to the current environment of 40-year high inflation, higher interest rates for credit, and financial volatility by trimming a portion of their spending on specific goods. In February, spending had declined in several discretionary categories. On a month-over-month basis, retail sales dropped at non-store retailers (-3.7 percent), health vendors (-1.8 percent), furniture stores (-1 percent), electronics outlets (-0.6 percent), and supermarkets (-0.5 percent). Real consumer spending growth is forecast to slow …
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