The surge in retail sales combined with January's ballooning jobs report exhibits a strong economy with positive momentum. Retail sales for January rose 3% from the prior month, beating expectations for a 1.9% increase and more than offsetting December's decline.
The resilience demonstrated by a tight labor market fueling a robust economy has prompted fears that the Fed might continue tightening monetary policy further than it had previously predicted. In addition, leading economic indicators, such as the inverted yield curve, point to a possible mild economic downturn ahead.
