New York Times (December 1)
“Investors had been growing more optimistic that the Fed will cut interest rates at next week’s meeting” while holiday sales “also bolstered the rally.” Still, “the consumer is still a major concern…. Analysts at Goldman Sachs and Bank of America have flagged that a recent rise in spending may be masking a concerning economic undercurrent: Many lower-income consumers are struggling with stubbornly high inflation and an uncertain labor market.”
Tags: Analysts, BoA, Consumer, Fed, GS, Holiday sales, Inflation, Interest rates, Investors, Labor market, Lower-income, Optimistic, Rally, Spending, Struggling, Undercurrent
Washington Post (September 20)
“Although investors cheered the Federal Reserve’s recent rate cut and the stock market has kept powering along, the economy is facing growing headwinds on one crucial front — consumer spending,” which is “faltering.” Even upper income consumers “are being more strategic about when to make big purchases, buying in bulk and shopping at cheaper retailers,” but the “shift is most pronounced among lower-income consumers, who are disproportionately vulnerable to rising prices and other economic pressures eroding their purchasing power.”
Tags: Bulk, Consumer spending, Economic pressures, Economy, Faltering, Fed, Headwinds, Investors, Lower-income, Rate cut, Retailers, Rising prices, Stock market, Upper income, Vulnerable
