Americans Keep Spending as Economy Defies Expectations

Despite predictions of a slowdown, U.S. consumers opened their wallets in June, pushing retail sales up 0.6%—a sharp rebound from the previous two months. From autos and clothing to restaurants and personal care, spending rose across the board.

The economic strength didn’t stop there. Jobless claims dipped to 221,000, lower than expected, reinforcing signs of a resilient labor market. And despite ongoing tariffs, inflation came in cooler than forecast—surprising many economists.

The upbeat data is giving President Trump new ammunition in his ongoing battle with the Federal Reserve. He wasted no time on social media, demanding: “Lower the rate!!!” and slamming Fed Chair Jerome Powell—whom he calls “Too Late”—for dragging his feet.

Joining Alicia Summers is Patrick Mueller, RFC and President of Bella Advisors, to break down what this means for the economy and whether the Fed should finally take action.