U.S. retail sales rose solidly in December, further reinforcing the Fed's caution to cut rates this year

January 16, U.S. retail sales rose solidly in December, indicating strong economic demand and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year. Data released Thursday showed that retail sales rose 0.4% last month, compared with an upwardly revised 0.8% increase in November. And surveyed economists previously forecast that retail sales in December for growth of 0.6%.

The report comes on the heels of last week's surge in nonfarm payrolls, which saw the unemployment rate fall to 4.1% from 4.2% in November. Additionally, the headline Consumer Price Index posted its largest gain in nine months despite a slowdown in underlying inflation in December. The resilience of the labor market is now driving spending through steady wage growth. Household balance sheets are also in good shape, although low-income consumers are struggling. (Golden Ten)