Fed's Barkin Says Consumer Spending Has Kept Economy Resilient

Dow Jones
08/13

1020 ET - The U.S. economy's resilience can be largely chalked up to persistent consumer spending, Richmond Fed President Tom Barkin says in a speech before the Greenville Chamber of Commerce in South Carolina. Inflation is still above target, real incomes are down and consumer sentiment just hit a multi-decade low, yet economic activity has held up, Barkin says. "Despite the turmoil, consumers have kept spending," he says. Consumers seem to have embraced a "YOLO" attitude, especially affluent consumers who have seen their wealth inflate with the stock market and rising home values, Barkin says. Many also still have their jobs, as unemployment claims recently hit a 50-year low, he says.

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