Personal spending rises as Americans continue to battle inflation
PITTSBURGH (KDKA) - It's no secret almost everything costs more these days.
But despite sky-high inflation, Americans are spending big on things like vacations and cars. Personal spending rose 1.8% in January, which is typically a sign of a strong economy.
And there are worries this could lead inflation to last longer.
"Consumers are spending; they're tolerating the higher prices because they're confident about their jobs and wages," said Teresa Ghilarducci, professor of economics at The New School. "Prices may still go up if consumers' tolerance of those prices does continue."
It's unknown if this will push the Federal Reserve to continue to raise interest rates, increasing the likelihood of a recession.
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