Fed coming up snake eyes in its battle with spend-happy consumers

Despite the Federal Reserve's aggressive interest rate hikes, U.S. consumer spending has not faltered, as seen in the success of the new Caesars casino in Danville, Virginia, which has exceeded expectations and attracted significant betting activity.

reuters.com

Relevant topic timeline:

8/25/2023

Consumers are richer than they think they are, says Bank of America. They just need to stop comparing their savings to those during lockdown

US consumer spending is showing resilience and robust growth, although signs of a slowdown are emerging, potentially related to the public's perception of a deteriorating financial situation due to high inflation and rising interest rates, despite the fact that households still have higher deposits compared to pre-pandemic levels.

8/30/2023

An indicator of Americans' willingness to gamble could suggest continued resilience in the US economy

Record-breaking casino revenue in Nevada suggests that the US economy is on solid ground, as Americans flock to casinos and international travel resumes, providing a positive signal to investors.

8/31/2023

US consumer spending accelerates; monthly inflation rates cooling

US consumer spending increased by the most in six months in July, driven by strong demand for goods and services, but slowing inflation rates suggest that the Federal Reserve will keep interest rates unchanged next month.

8/31/2023

The Fed's preferred inflation measure stayed high in July — and consumers are continuing to spend

Consumer spending in the US jumped 0.8% in July, the strongest monthly gain since January, driven by purchases of restaurants, live shows, toys, games, and recreational equipment; however, underlying data suggests that this spending may be on borrowed time.

8/31/2023

US consumer spending accelerates; declining savings a red flag

U.S. consumer spending increased in July, boosting the economy and reducing recession risks, but the pace is likely unsustainable as households dip into their savings and face potential challenges from student debt repayments and higher borrowing costs.

9/10/2023

Strong Consumer Spending Supports Stocks, But Inflation and Rate Hikes Remain Key Data Points

Consumer spending has remained resilient, preventing the US economy from entering a recession, and this trend will likely continue due to low household debt-to-income levels.

9/11/2023

Bloomberg Survey: US Consumer Spending Expected to Decline in 2024 as High Rates and Dwindling Savings Take Toll

Consumer spending in the US is expected to decline in early 2024, marking the first quarterly decline since the start of the pandemic, according to a survey by Bloomberg. The pessimism is attributed to high borrowing costs and the depletion of COVID-era savings.

9/13/2023

Warning Signs Flash as Rate Hikes Threaten to End Consumer Spending Boom

Consumer spending in the US has supported the economy despite concerns of a recession, but rising interest rates, the resumption of student loan payments, and dwindling savings are predicted to put pressure on consumers and potentially lead to a shrinking of personal consumption.

9/14/2023

Retail Sales Rise on Higher Gas Prices But Underlying Spending Slows as Inflation Persists

U.S. retail sales rose more than expected in August due to higher gasoline prices, but underlying spending on goods slowed as Americans faced increased inflation and borrowing costs, while the trend in underlying spending on goods was not as robust as initially thought in July. Despite this, overall consumer spending is expected to remain strong, driven by spending on services.