Retail Sales Rise in April Despite Record Inflation

The transcript discusses recent retail sales data, highlighting stronger-than-expected performance in some sectors and the impact of inflation on consumer spending. It examines market reactions, particularly in the yield curve, and considers the implications for Federal Reserve policy. The discussion includes insights from Jim Bullard on the economic outlook, emphasizing the strength of the job market and potential risks from Europe and China. The transcript concludes with a focus on future economic challenges, particularly in the housing sector.

What was the month-over-month change in retail sales excluding auto and gas?

• 2.7%

• 0.9%

• 1.0%

• 0.6%

Which sector showed a significant year-over-year increase, indicating an inflation impact?

• Grocery stores

• Electronics and appliance stores

• Gasoline sales

• Clothing accessories

How did non-store retailers, including Amazon, perform compared to the previous month?

• Increased by 2.1%

• Decreased by 0.4%

• Increased by 1.9%

• Remained the same

What is Jim Bullard's expectation regarding household spending?

• It will decrease due to inflation

• It will hold up due to a strong job market

• It will decline due to higher mortgage rates

• It will increase due to lower gas prices

What is the Federal Reserve's current stance on interest rate hikes?

• They plan to increase rates by 25 basis points

• They plan to increase rates by 50 basis points in the next two meetings

• They have no plans to change rates

• They plan to decrease rates