Consumers Downshift, But Fed Is Still Waiting on Rate Decision

This is Washington Edition, the newsletter about money, power and politics in the nation’s capital. Today, economics enterprise reporter Rich Miller looks at a retail sales surprise and what Federal Reserve officials say about when to cut interest rates. Sign up here and follow us at @bpolitics. Email our editors here.

Even as inflation raged and interest rates skyrocketed over the last two years, consumer spending stayed strong. Buttressed by extra savings built up during the pandemic and a robust jobs market, Americans kept splurging on everything from new cars to expensive vacations.