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Possible Federal Reserve Interest Rate Hike Amidst Resilience Of The The US Economy

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Possible Federal Reserve Interest Rate Hike Amidst Resilience Of The The US Economy Photo From: iStock

A number of data indicators have demonstrated a more resilient consumer than many had anticipated, and the retail sales report for July showed sales grew by about twice what analysts had predicted. Amidst the resilience of US consumer, possible Federal reserve Interest Rate hike may occur.

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Possible Federal Reserve Interest Rate Hike Amidst Resilience Of The The US Economy
Photo From: iStock

Possible Federal Reserve Interest Rate Hike

Despite the optimistic figures, some economists worry that too much optimism may signal that another Federal Reserve interest rate rise is imminent in a bid to keep inflation from rising. This prediction comes despite experts’ predictions that the US economy won’t collapse over the next year as originally anticipated as reported in Yahoo News.

The top US economist at Oxford Economics said on Tuesday that “this significant gain won’t soothe Fed officials and leaves the possibility of tighter monetary policy very much on the table”.

READ ALSO: Higher Mortgage Rates And Gas Prices A Burden To Increasing Number Of Americans Living From Paycheck To Paycheck

Possible Federal Reserve Interest Rate Hike Amidst Resilience Of The The US Economy

“The overall resilience of the economy is what we’ve been able to achieve disinflation so far without any meaningful negative impact on the labor market the strength of the economy — overall, that’s a good thing,” Powell said on July 26. Additionally, consumer confidence is also increasing, which will boost further future economic activity.

Sports goods and nonstore merchants, which includes e-commerce, saw the biggest increases in the July retail sales data, showing that although services have mostly drove spending in the post-pandemic economy, Americans are still making purchases of products. According to Citi experts, this may cause inflation issues based on a report from Yahoo News.

READ ALSO: Texas Tax Free Weekend To Get Your Tax-Free Back To School Needs Has Ended

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