Interest rate rises are failing to produce a strong cutback in consumer confidence So far this year ...
Interest rate rises are failing to produce a strong cutback in consumer confidence So far this year the Fed funds rate has risen by 50 basis points to 5.25%. In the UK such a sharp rise would have had a large impact but the US consumer is not so tied to the direction of mortgage rates Consumer confidence has soared in the US since 1993 and it is continuing to grow, though at slower a rate year on year August's retail sales were up by 10% and inflation remains around 2%. Fund managers have subsequently not rotated their portfolios out of consumer cyclicals in light of the two 25 basis p...
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