The US economy\u2019s fast-paced growth could slow somewhat as the Federal Reserve tries to bring inflation under control in the next few months, but consumers are likely to keep on shopping as lower inflation eases uncertainty, National Retail Federation (NRF) Chief Economist Jack Kleinhenz said.<\/p>\n\n\n\n
\u201cThe Fed\u2019s tightening has kicked off a new cycle of adjustment and the outlook for interest rates has consequences for consumers and businesses alike,\u201d Kleinhenz said. \u201cThere is a growing list of uncertainties, and the risks are mounting. But underlying strength and momentum from both the consumer and business sectors are likely to offset a modest slowdown and should leave the economy bustling forward this year.\u201d<\/p>\n\n\n\n
While the Fed\u2019s actions could mean higher car and mortgage payments, Kleinhenz said household finances have remained strong despite consumers\u2019 worries over inflation and the war in Ukraine. The 4% year-over-year increase in retail sales in March showed consumers have the willingness and ability to spend as a result of job growth, wage gains and wealth accumulated during the pandemic as well as low financial obligations relative to income.<\/p>\n\n\n\n
Kleinhenz\u2019s remarks came in the May issue of NRF\u2019s Monthly Economic Review<\/em>, which said inflation, though still strong, should slow in 2022, partly because year-over-year comparisons will be against already-elevated levels of spending in 2021. In addition, fiscal and monetary policies from the Fed and other agencies that have combined with ongoing pandemic-induced supply issues to drive inflation are coming to an end.<\/p>\n","protected":false},"excerpt":{"rendered":" The US economy\u2019s fast-paced growth could slow somewhat as the Federal Reserve tries to bring inflation under control in the next few months, but consumers are likely to keep on shopping as lower inflation eases uncertainty, National Retail Federation (NRF) Chief Economist Jack Kleinhenz said. \u201cThe Fed\u2019s tightening has kicked off a new cycle of…<\/p>\n","protected":false},"author":1,"featured_media":15189,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"thb-sponsors":[],"class_list":["post-15188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"acf":[],"yoast_head":"\n