The Fed has enacted multiple aggressive interest rate hikes so far to reduce inflation and bring the economy back to balance. Despite rising recession fear, the retail industry has performed well this year with steady consumer spending. Retail sales rose 8.2% in September from a year ago. In addition, online consumer spending rose in October as consumers took advantage of early holiday shopping discounts and deals offered by retailers.
Though recession possibilities are high, Bank of America CEO Brian Moynihan believes that consumers still have strong credit, unemployment is low, and wage growth is strong, which should help the retail industry perform well. He said that U.S. consumer spending is experiencing a “mitigation of growth” but not a slowdown.
