Retail Sales Surge Amid Tariff Concerns, Fed Chair Powell Warns of Consequences
U.S. retail sales rose 1.4% in March as consumers rushed to purchase big items before tariffs took effect, while Fed Chair warns of inflation and slow growth.
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Powell's remarks immediately sent stocks lower as investors digested the top central banker's concern about the tariffs.
Fed Chair Powell sounds alarm on tariffs, sending stocks lower
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Wall Street has been mired in uncertainty as investors wrestle with the Trump administration’s back-and-forth on trade policy.
Stocks slide as Powell warns of impact of tariffs on the economy | Business
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But analysts were quick to point out that the data wasn’t a sign of strength but underscored the extreme economic uncertainty that shoppers face and how they want to get ahead of higher prices.
WATCH LIVE: Fed Chair Powell delivers remarks as tariff battle with China continues
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Consumers rushed to buy durable goods in March to avoid price hikes from steep tariff increases.
Retail sales surged in March led by autos as consumers looked to beat tariffs
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Even with a notable rise in retail sales last month, there are concerns that consumer spending could wane as the wider effects of tariffs kick in.
Retail sales jump as people rush to buy cars ahead of tariffs
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Summary
U.S. retail sales soared 1.4% in March, largely driven by consumers purchasing significant items like cars before President Trump's tariffs were implemented. While auto sales surged by 5.3%, analysts caution that this spending spike reflects consumer anxiety about rising prices due to tariffs. Fed Chair Jerome Powell has warned that the tariffs will likely lead to higher inflation and slowed economic growth, triggering a dip in stock markets following his remarks. As consumer confidence wanes amid economic uncertainty and new tariffs on imports, analysts predict a likely decrease in retail sales in the upcoming months.
Perspectives
Retail sales increased significantly in March as consumers rushed to purchase big-ticket items ahead of expected price increases due to tariffs.
Consumer sentiment has declined amid concerns over the impact of tariffs on prices and the economy, with many retailers adopting a cautious approach to inventory.
Analysts predict a potential decrease in retail sales in the coming months as tariffs raise costs for retailers and consumers become more budget-conscious.
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