Americans spent more money on cars, furniture and at hardware stores to boost retail sales to a third monthly increase in September.
The string of gains since July followed declines in May and June. Those had raised worries that the country could be in danger of toppling back into recession. Economists caution that while the economy is growing, the expansion is not strong enough to lower face high unemployment and offset weak income growth.
Federal Reserve Chairman Ben Bernanke said during a speech today in Boston that the Fed is prepared to take further steps to rejuvenate the economy by buying Treasury bonds. But he said Fed policymakers are wrestling with how big the program should be.
The Fed is widely expected to announce a Treasury buying program at their next meeting Nov. 2-3. The Fed's bond purchases would be intended to lower long-term interest rates to stimulate buying and spending and help lower unemployment.
Bernanke also indicated that policymakers are trying to craft a plan to strengthen the economy and lift inflation from super-low levels.
Bernanke: "Appears to be a case for further action"
Given the Committee's objectives, there would appear--all else being equal--to be a case for further action. However, as I indicated earlier, one of the implications of a low-inflation environment is that policy is more likely to be constrained by the fact that nominal interest rates cannot be reduced below zero.September retail sales inch up
Consumers loosened their grip on their wallets in September, pushing retail sales higher for the third consecutive month, according to government data released Thursday.
The 0.6 percent increase from the month before was larger than many economists had expected, while August's gain was revised upward to 0.7 percent. The results suggest that consumers are spending enough to keep the country out of recession, but analysts say they are unlikely to go much further.
New, Retail Games Account for 59% of Consumer Game-Playing Spend:
New NPD report also reveals a decline in new, physical sales during
