Pain at Target, Walmart is a good sign for slow-minded Fed
It’s still unclear how quickly - or whether - the shift in US consumer spending away from goods will cool price pressures. But any signs of a slowdown in inflation is a good sign for the Federal Reserve, which has become increasingly concerned about rising prices.
New York | US consumers are shifting their dollars from merchandise to services like travel, a worrying trend for retailers that benefited from the pandemic spending binge but a promising sign for snarled supply chains and inflation.
For months, economists have been expecting demand for merchandise to wane as COVID-19 fears subside and Americans spend on experiences such as vacations and entertainment. The expectation was that a decline in spending on goods would ameliorate supply-chain pressures and help to tamp down decades-high inflation.
