(Reuters) US retailers saw flat sales in July. Revenues remained at the previous month’s value, the Commerce Department announced on Wednesday. Economists polled by Reuters had expected a slight increase of 0.1 percent. In June, there was still a downward-adjusted increase of 0.8%.
According to Helaba expert Ulrich Wortberg, the current numbers likely won’t contribute to further economic optimism. “Regardless, the US Federal Reserve will likely stick to the goal of increasing the key rate range,” he added.
High inflation erodes the purchasing power of US citizens. However, the inflation rate fell to 8.5% in July from 9.1% in June. The Federal Reserve fought rampant inflation in the summer by unusually raising interest rates by 0.75 percentage points. Want to continue next month? The prime rate is currently between 2.25 and 2.50%. In financial markets, the Fed is expected to take a less aggressive stance in September, which could raise interest rates by half a percentage point. Investors are hoping to get information about the Fed’s further path from the release of the minutes of the July interest rate meeting, scheduled for the evening (20:00 CEST).
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