Skip to Content

Cautious but steady consumers buoying hopes for US economy

KIFI

By CHRISTOPHER RUGABER and ANNE D’INNOCENZIO
AP Business Writers

WASHINGTON (AP) — Call it the Goldilocks consumer. Defying high inflation and sharp interest rate hikes, Americans keep spending — a trend that, if sustained, could keep the economy humming just enough to help avoid a much-predicted recession. Surveys show that consumers on average don’t expect today’s still-high inflation to last for very long. That confidence could lead them to moderate their spending habits and wage demands, which would help slow inflation over time. If the combination lasts, it could make it easier for the Federal Reserve to tame inflation without derailing the economy. As inflation eased, the Fed would be able to curtail its rate hikes, making a recession less likely.

Article Topic Follows: AP National Business

Jump to comments ↓

Author Profile Photo

Associated Press

BE PART OF THE CONVERSATION

KIFI Local News 8 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content