U.S. consumer spending increased by the most in seven months in January as the government doled out more pandemic relief money to low-income households and new COVID-19 infections dropped, positioning the economy for faster growth in the first quarter.
Fiscal stimulus fires up US consumer spending; inflation benign business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.
The influx of new government stimulus efforts and accelerated vaccine distribution could lift growth in the current quarter, ending in March, to 5% or even
Fiscal stimulus fires up U.S. consumer spending; inflation benign
By Lucia Mutikani
Reuters
WASHINGTON (Reuters) - U.S. consumer spending increased by the most in seven months in January as the government doled out more pandemic relief money to low-income households and new COVID-19 infections dropped, positioning the economy for faster growth in the first quarter.
Despite the strong rebound in consumer spending reported by the Commerce Department on Friday, price pressures were muted. Inflation is being closely watched amid concerns from some quarters that President Joe Biden s proposed $1.9 trillion COVID-19 recovery package could cause the economy to overheat.
WASHINGTON (Feb 26): US consumer spending increased by the most in seven months in January, as the government doled out more pandemic relief money to low-income households and new Covid-19 infections dropped, positioning the economy for faster growth in the first quarter.
Despite the strong rebound in consumer spending reported by the Commerce Department on Friday, price pressures were muted. Inflation is being closely watched amid concerns from some quarters that President Joe Biden s proposed US$1.9 trillion Covid-19 recovery package could cause the economy to overheat.
The plan, being considered by the US Congress, would be on top of a rescue package worth nearly US$900 billion approved by the government in late December. Federal Reserve Chair Jerome Powell has played down the inflation fears, citing three decades of lower and stable prices.