US consumer spending saw a steady increase in August, supporting expectations of solid economic growth in Q-3, while a measure of underlying inflation remained at the Fed’s 2 percent target for a 4th month running.
Friday, economists said the report from the US Commerce Department should allay any fears of the economy overheating and likely keeps the Fed on a gradual path of interest rate increases aka a ‘soft landing’.
The Fed raised rates Wednesday for the 3rd time this year and removed the reference to monetary policy remaining “accommodative.”
Growth is solid and inflation pressures modest. This is the environment the Fed needs to move interest rates up at a gradual pace as further rate hikes start to look like tightening.
The US Commerce Department said consumer spending, which accounts for more than two-thirds…