US consumer spending posts biggest increase since 2009
The surge in spending sets a stronger base for growth in consumption heading into the second quarter
Washington — US consumer spending increased by the most in more than nine-and-a-half years in March, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months. The surge in consumer spending reported by the commerce department on Monday sets a stronger base for growth in consumption heading into the second quarter after it slowed sharply in the first three months of 2019. Tame inflation, however, supports the Federal Reserve’s recent decision to suspend further interest rate increases in 2019. Fed officials are scheduled to meet on Tuesday and Wednesday to assess the economy and deliberate on the future course of monetary policy. The US central bank in March dropped forecasts for any interest rate increases in 2019, halting a three-year policy tightening campaign. The Fed raised borrowing costs four times in 2018. Consumer spending, which accounts for more than two-thirds of US economic activity, surged 0.9% as households stepp...
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