U.S. Consumer Spending Rebounds
It climbed to its highest rate in seven months
U.S. consumer spending increased by the most in seven months in January as the government doled out more pandemic relief money to low-income households and new COVID-19 infections dropped, setting up the economy for faster growth in the first quarter.
Despite the strong rebound in consumer spending reported by the Commerce Department on Friday, price pressures were muted. Inflation is being closely watched amid concerns from some quarters that President Joe Biden's proposed $1.9 trillion COVID-19 recovery package could cause the economy to overheat.
The plan, being considered by the U.S. Congress, would be on top of a rescue package worth nearly $900 billion approved by the government in late December. Federal Reserve Chair Jerome Powell has played down the inflation fears, citing three decades of lower and stable prices.
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