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[...]consumers are now adjusting their spending habits in response to rising prices, i.e., they've started bargainhunting for cheaper products and are cutting back on services such as restaurants and entertainment or putting off larger planned purchases. [...]Wells Fargo have reduced their residential forecast to a 3% decline in the second quarter of 2022, citing a recent pullback in existing home sales and higher interest rates. Since raising the federal funds rate makes it more expensive to borrow and lowers the supply of available money, these changes are an indication of the Fed's policy to keep inflation under control. [...]Dr. Ray Perryman of the Perryman Group believes the Federal Reserve is well underway with their tightening measures, seeking to find a balance between moderating inflation and sustaining growth.
Details
Investments;
Disposable income;
Employment;
Housing starts;
Economic conditions;
Federal Reserve monetary policy;
Interest rates;
Consumer Price Index;
Economic growth;
Expenditures;
Automobile sales;
Stock exchanges;
Consumers;
Federal funding;
Debt restructuring;
Securities markets;
Pandemics;
Consumption;
Consumer credit;
Supply chains;
Consumer spending;
Energy economics;
Unemployment;
Cost control;
Inflation
1 Professor of Management at Campbell University's Adult & Online Education Division and Lundy Fetterman School of Business