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May Retail Sales Jump 0.9%, Fed Holds Rates

6/18/2026

34 7 Full Breakdown

Summary

Story summary

U.S. Commerce Department reported retail sales rose 0.9% in May, surpassing the 0.5% forecast, and were up 6.9% year-on-year.
Service-station receipts jumped 3.4% in May, a 26.5% year-on-year gain, while auto-dealer sales rose 1.2% and online sales climbed 1.5%.
The Federal Reserve (Fed) kept its rate at 3.50%-3.75% and signaled hikes this year, as tax refunds and a stock rally boosted spending and saving rate fell to a four-year low.

History

Historical Context

The $787 billion American Recovery and Reinvestment Act, signed by President Barack Obama on Feb 17 2009, was designed to arrest a recession that saw unemployment peak at 10 % in October 2009. By pairing that fiscal injection with near-zero Federal Reserve rates, consumer demand rebounded—a dynamic reflected in May 2024 retail sales, which rose 0.9 % and 6.9 % year-on-year, according to the Commerce Department.

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Story summary

U.S. Commerce Department reported retail sales rose 0.9% in May, surpassing the 0.5% forecast, and were up 6.9% year-on-year.
Service-station receipts jumped 3.4% in May, a 26.5% year-on-year gain, while auto-dealer sales rose 1.2% and online sales climbed 1.5%.
The Federal Reserve (Fed) kept its rate at 3.50%-3.75% and signaled hikes this year, as tax refunds and a stock rally boosted spending and saving rate fell to a four-year low.

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