US Economy News Today: Retail Sales Were Flat In April As Consumers Slowed Spending

Inflation and Retail Sales Slowdown Raise Concerns About U.S. Economy

The U.S. economy is showing signs of slowing down, as inflation numbers decelerate and retail sales remain flat. Minneapolis Fed President Neel Kashkari reiterated the Federal Reserve's commitment to reducing inflation to the 2% target, even if it means holding interest rates at current levels for a longer period. Homebuilders have lost confidence in their prospects for sales, with rising mortgage rates worsening the outlook for buyers. However, mortgage demand has risen again, driven by a dip in borrowing costs for home loans. Consumer spending also appeared to slow down in April, with retail sales coming in relatively unchanged compared to March's levels. The cost of living, as measured by the Consumer Price Index, rose 3.4% over the year in April, down from a 3.5% increase in March. This is a step back in the right direction for the Federal Reserve, which is waiting for confidence that inflation is sustainably moving toward its 2% annual goal. These developments raise concerns about the state of the U.S. economy and how they are likely to affect personal finances.

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