17 Aug 2022

The Federal Reserve rate-setting committee began considering an eventual deceleration in the pace of monetary tightening at its July meeting, aligning with comments made by Chair Jerome Powell during the post-decision press conference. A record of the discussion showed no concerns raised about the loosening in financial conditions that occurred ahead of the meeting, and appears to ratify the market reaction that unfolded when Mr. Powell said “it likely will become appropriate to slow the pace of increases”. Participants remained determined to bring inflation down to target, noting that price growth “remained unacceptably high”, with several expressing reservations about the...

US retail spending flatlined last month, but underlying consumer demand remained strong, keeping monetary tightening expectations aloft. According to figures published by the Census Bureau this morning, total receipts at retail stores, online sellers and restaurants were roughly unchanged on a month-over-month in July, up 10.3 percent over a year prior. Markets were expecting a 0.1 percent headline gain. Gas station sales fell -1.8 percent month-over-month as global energy prices tumbled. Motor vehicle and parts dealers posted a -1.6 percent loss. Receipts at food services operations rose 0.1 percent, and grocery store sales were up 0.2 percent, but rising food...