US Consumer Spending Slows in February While Inflation Remains High, Forcing More Fed Rate Hikes

• US retail sales rebounded less than expected in February, suggesting slowing consumer spending in Q1 amid high inflation and interest rates.

• Other data shows producer prices rose more than expected in February, indicating goods deflation may be ending.

• Jobless claims fell slightly last week and data revisions show laid-off workers are quickly finding jobs.

• Atlanta Fed trimmed Q1 GDP growth forecast to 2.3% rate due to weaker consumer spending and business inventories data.

• Analysts say high inflation will lead the Fed to continue raising rates before cutting likely starts in June.