Thanks, Obama…Consumer Confidence Dropping Like a Rock
September 30, 2016
Thanks, Obama…Consumer Confidence Dropping Like a Rock
Thanks, Obama...Consumer Confidence Dropping Like a Rock - Shoppers ride escalators at the Beverly Center mall in Los Angeles, California November 8, 2013.
U.S. consumer spending unexpectedly fell in August for the first time in seven months while inflation showed signs of accelerating, mixed signals that could keep the Federal Reserve cautious about raising interest rates.
The Commerce Department said on Friday that consumer spending, which accounts for more than two-thirds of U.S. economic activity, fell 0.1 percent last month after accounting for inflation.
Analysts polled by Reuters had expected a 0.1 percent gain.
Yields on U.S. government debt fell after the data and the dollar weakened against a basket of currencies, signaling investor doubts about the prospect of a near-term Fed rate increase. U.S. stock futures trimmed gains.
Fed Chair Janet Yellen said last week she expected the U.S. central bank would raise rates once this year to keep the economy from eventually overheating.
Prices for fed funds futures suggest investors see almost no chance of a hike at the Fed's next policy meeting in early November
That will roughly even odds of an increase at its mid-December meeting, according to CME Group.
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