Resilient Consumer Taps Brakes on Inflation, Fed Raises Rates

This week's economic news brought both positive and negative indicators for the US economy. Retail sales rebounded in August, increasing by 1.2% for the month and 6.0% compared to last year, showing a resilient consumer despite high inflation.

The Federal Reserve raised interest rates this week for the first time in three years due to stubbornly high inflation, which has remained above the 2.0% target for 65 consecutive months. August's headline inflation rate was 3.4%, while core CPI rose by 2.4%.

The ongoing Iranian conflict and higher energy prices continue to pose a challenge for the market, but US energy independence and lower energy intensity in the economy may help mitigate its impact.