U.S. Personal Spending Report Allows Fed to Pause Rate Cuts, Economists Say
May 30, 2008 – 3:53 amInflation remains contained and personal spending
continued improving according to the latest report from the U.S. Commerce
Department on Friday. Economists said the Fed will be pleased to see that
consumers are holding in there despite weakness in the broader economy,
though in real terms the 0.2% gain in personal spending was flat.
Fixed income strategist T.J. Marta from RBC Capital Markets said the
big picture is that there is “no resolution to the conflicting problems
confronting a dual-mandated Fed…