Fed’s Barkin: Remarkable how strong consumer spending has remained

On the point about the consumer, yesterday’s retail sales report was very strong but there was a huge seasonal adjustment that has the usual bears questioning the underlying strength.

Other comments from Barkin:

• Expectation of a recession as needed to slow inflation has not played out
• Firms are reluctant to let people go, and some sectors are still short on labor supply
• Clearly on the ‘back end’ of inflation
• Firms are still trying to test their pricing power through that is not a permanent state
• I’m watching the unemployment rate carefully but as open to idea that the policy is not as restrictive as thought

This article was written by Adam Button at www.forexlive.com.