U.S. Consumer Spending Accelerates, but Declining Savings a Concern
U.S. consumer spending increased by the most in six months in July as Americans bought more goods and services
but slowing monthly inflation rates cemented expectations that the Federal Reserve would keep interest rates unchanged next month.
The report from the Commerce Department on Thursday, together with other data showing an unexpected decline in first-time applications for unemployment benefits last week, further diminished the risks of a recession this year.
The current pace of increase in consumer spending is, however, unlikely sustainable. Households are drawing down excess savings accumulated during the Covid-19 pandemic. Having said that, the student debt repayments are to resume in October for millions of Americans and higher borrowing costs could make it harder for consumers to keep using credit cards to fund purchases.
Brazil’s Economy Grows More Than Expected as Interest Rate Falls
Brazil’s central bank recently lowered its interest rate by 50 basis points to 12.75% making its second consecutive rate cut.
ECB Delivers 10th Hike as Lagarde Won’t Quite Confirm Rate Peak
On Thursday, September 14, The European Central Bank raised interest rates for the 10th consecutive time as President Christine Lagarde signaled a shift in gear that could mean the peak has been reached.
Why America's Deficit Doubled to $2 Trillion in One Year
The United States government will run a deficit of around $2 trillion, double last year's number, for the fiscal year that ends in just over three weeks.
