What United States economic news was released today?
Asked 7 days ago
Answer
Today's United States economic news includes a rise in core inflation to 2.7%, a fall in personal income, a significant drop in new home sales, and continued high mortgage rates. The Federal Reserve is maintaining steady interest rates due to persistent inflation and tariff risks. Markets remain resilient, but economic uncertainty is affecting consumer behavior and spending.
References


Retailers are overstocking inventories in anticipation of potential tariffs, but these will eventually need to be restocked at higher costs, possibly leading to higher consumer prices. The Federal Reserve is cautious about cutting rates due to tariff risks.


Core inflation increased to 2.7% in May, slightly above expectations. Personal income fell by 0.4%, marking the first negative result since 2021. Personal and real spending also declined, and inflation remains above the Federal Reserve's 2% target.


The Federal Reserve's decision to keep interest rates unchanged is contributing to market resilience. Recent economic data shows elements of stagflation, and the Fed does not see justification for easier policy at this time.