Posted 10/17/2023, 6:57:22 PM
Strong Retail Sales Show Resilient Consumer Spending, Keeping Fed on Alert for More Rate Hikes
- Retail sales rose 0.7% in September, double expectations, indicating resilient consumer spending
- Strong consumer spending boosted by hot jobs market and wage growth, supporting inflation
- Fed may need more rate hikes to cool inflation if economy stays strong, per Powell comments
- Markets now see 40% chance of December Fed rate hike, up from 25% before retail sales data
- Report suggests economy had more momentum over summer than thought, keeping Fed on alert