Inflation slowed sharply in March, moving closer to the Federal Reserve’s 2% target, while tariff-induced consumer spending continued to fuel the economy.

Consumer sentiment is souring, and recession fears are rising, but spending in the US is on the rise as consumers and businesses are likely buying now to lessen the expected impact of President Donald Trump's tariffs. Durable goods spending increased about 2.3% from the third quarter of 2024 to $2.218 trillion in the first quarter of 2025.

Consumer spending, which makes up about two-thirds of the U.S. economy, grew in March as inflation cooled, according to new data from the Bureau of Economic Analysis. The push came largely from U.S. h