U.S. Retail Surge Signals Strong Year-End Economy

U.S. retail sales saw a significant increase in November, driven by motor vehicle and online purchases, indicating robust economic momentum. Despite this surge, the Federal Reserve is expected to maintain its current interest rate policy. Economists highlight the impact of President-elect Trump's proposed policies on future economic conditions.

In a notable economic development, U.S. retail sales exceeded predictions in November, driven significantly by motor vehicle and online commerce. This surge aligns with ongoing economic momentum as 2023 draws to a close.

However, this positive retail performance hasn't swayed expectations that the Federal Reserve will decide against further interest rate cuts. The central bank commenced a two-day policy review on Tuesday, and market analysts predict a pause in rate reductions as early as January.

The economic landscape is further complicated by President-elect Donald Trump's forthcoming policies, including potential tariffs and deportations. Nevertheless, notable retail sales growth, such as a 2.6% jump in auto dealership earnings, underscores consumer confidence and supports the Fed's cautious approach.

(With inputs from agencies.)