WASHING TON: There’s more evidence now that US economic tailwinds highlighted this week by Federal Reserve Chairman Jerome Powell are gathering strength.
Reports out Thursday showed recent tax cuts buoyed Americans’ spending power in January, unemployment claims fell last week to an almost five-decade low and factories expanded in February at the fastest rate since 2004. In addition, a key price gauge watched by the Fed rose in January by the most in a year.
The update on the economy comes as Powell faced lawmakers again following comments earlier in the week that “some of the headwinds the US economy faced in previous years have turned into tailwinds.” Fatter wallets and a solid labour market signal inflation-adjusted consumer spending may pick up after falling in January.
