the fed holds, us consumers say they're broke, and they keep spending

the fed

on 28 october the federal reserve kept its target range at 3.75% to 4%, in a 10-2 vote.

its own words: "economic activity is expanding at a strong pace" and "domestic spending has been resilient."

the mood

the university of michigan's final october consumer sentiment reading came in at 48.0, near all-time lows.

investinglive points out that sentiment has become more of a political indicator than a spending one, and that gloomy consumers often keep spending.

the gap

so: people say they're broke. the central bank says they're spending.

both can be true. people complain and still buy.

why it matters for a creator business

ppv is not a necessity. when money feels tight, small optional purchases are where people cut first, at least in theory.

in practice the spending data says they haven't.

the short version

• rates stay at 3.75% to 4%, decided 10-2
• the fed calls spending resilient and growth strong
• consumer sentiment finished october at 48.0, near record lows
• sentiment and spending don't move together anymore
• your own sales data beats any survey
• thin margins are a cost problem first