Read the highlights of this week’s commentary from Helios:
- U.S. inflation cooled in April, with the Consumer Price Index (CPI) rising 0.2% for the month and annual inflation falling to 2.3%, the lowest since early 2021. Food prices dipped, but shelter costs rose. While inflation shows signs of cooling, factors like housing costs and upcoming tariff impacts mean the outlook remains uncertain.
- Retail sales rose just 0.1% in April, a slowdown from March as consumers pulled forward purchases ahead of new tariffs. The data suggest consumer spending is softening amid tariff-driven uncertainty, but year-over-year sales remain up, showing overall resilience despite potential headwinds.
- Moody’s downgraded the U.S. credit rating from Aaa, the highest possible rating, to Aa1 on Friday, citing rising debt and deficits. The move follows similar downgrades by Fitch and S&P, marking the loss of the nation’s last top-tier rating. Moody’s warned that persistent budget deficits and new spending plans could add trillions to federal debt, as Congress works to pass a large tax-and-spending bill.
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