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Are U.S. consumers finally running out of steam?

Mar 28, 2025
Consumers are feeling the squeeze of inflation yet continue to spend. An economist suggests this behavior may be unsustainable. Dive into a pilot project aiming for drastic water savings in Los Angeles. Discover how a small business in Michigan thrives by merging values with practices and the role of composting in waste management. Additionally, explore sustainable avocado farming and the impact of trade tensions on tourism.
25:46

Podcast summary created with Snipd AI

Quick takeaways

  • Despite a drop in consumer confidence, spending behaviors persist, indicating a potential disconnect influenced by inflation anxiety and economic uncertainties.
  • Retailers are adjusting strategies in response to tariffs and supply chain challenges, preparing for price hikes while monitoring consumer reactions closely.

Deep dives

Inflation and Economic Signals

Inflation remains a significant concern as the Personal Consumption Expenditures Index increased in February, signaling a year-over-year rise of two and a half percent. The Federal Reserve is taking a careful approach to interpreting this data, focusing on trends rather than reacting to isolated reports. Chair Powell stressed the difficulty of distinguishing between actual inflation signals and noise, especially amid uncertainties like tariffs. Understanding these nuances is crucial for determining appropriate monetary policy responses as inflation impacts various sectors differently.

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