Retail Sales Surge, Fed Keeps Rates Steady

0:00It's April 21st. This is US News Today, AI-powered stories shaping the nation. I'm Corey with the story. US retail sales shot a 1.7% in March. The biggest jump in a year. Blowing past expectations thanks to a massive gas price spike. Gasoline stations saw receipts soar 15.5%. The highest ever recorded, as pump prices climbed 24.1% from. The Middle East War. The conflict with Iran pushed oil prices over 30% higher, fueling inflation with the consumer price index up 0.9% last month. Tax refunds gave folks some extra cash, averaging $351 more than last year so far, propping up spending across the board. Economists say households are holding strong for now, dipping into savings to battle the pump pain, but consumer sentiment hit a record low in April. Those worry that higher energy costs, adding about $857 to yearly gas bills, could crypt discretionary by soon.

1:02Core retail sales, stripping out cars, gas, building supplies, and restaurants rose 0.7%, signaling steady consumer spending that. Lines up with first quarter growth estimates around 1.3%. Other spots like furniture and electronics saw gains too, while dining out barely budged. While this points to the Fed, likely keeping rate steady amid hotter inflation, with year over year sales of 4% and GDP data dropping next, week to show if the economy's rebounding from last quarter sluggish 0.5% pace.