As life continues to settle down, he said, the Federal Reserve (Fed) may find it easier to battle inflation. Fed officials are mum ahead of their meeting next week and the data calendar is light until tomorrow’s inflation report. While the US labour market remains tight, signs of normalisation can already be seen, said Dutta. Aggregated credit and debit card spending was up 9% year-over-year in May, with credit card spending higher by 16% and debit card advancing by 4%. “Our card data shows continued growth in consumer spending, but inflation is challenging households’ purchasing power,” Bank of America Institute senior economist David Tinsley said in a statement.
