Policymakers are looking for signs that interest rate increases are cooling off the labor market, affecting wages, purchases and ultimately prices.
Americans with low incomes are pulling back from buying even as their richer counterparts keep spending — with potentially big consequences.
Economists hoped that as households shifted spending back to services, price gains would cool. That effect might be less pronounced now.
President Biden is suffering in the polls as high inflation saps confidence in the economy, even as growth comes in strong.