Chart of the Day: Stimulus Tracker

Subscribe and get a FREE gift!

In This Issue of Condé Nast Portfolio

Home > Views > Blogs > Odd Numbers > Chart of the Day: Stimulus Tracker

Your Name

Your Email Address *
Send a copy to me

Recipient's Email Address *

Separate multiple email addresses (max 20) with commas.

Subject *

Message

0/1500

Email Confirmation

Odd Numbers

by Zubin Jelveh

Main

Chart of the Day: Amazingly Consiste... Greenspan to Bernanke: You're Becomi...

Aug 4 2008 10:05AM EDT

The tax rebates may be helping the economy avoid, or minimize the impact of, a full-blown recession, but higher energy and food prices and tighter credit conditions mean that this stimulus package isn't helping out consumers as much as the 2001 version did.

The government reported today that consumer spending rose a robust 0.6 percent in June, but when inflation is factored in, spending actually dipped 0.2 percent compared with May.

The following chart shows the year-over-year growth in inflation-adjusted spending:

This can't be welcome news for the Fed. On the one hand, inflation is obviously taking a big chunk out consumers' spending power and some Fed members are dying for tighter policy, but with a weak economy and financial markets still in need of help, the FOMC is just not in a good position to raise rates.

See more in