Moody’s: Coronavirus variants amid inflation pressures test US consumer resilience

“COVID-19 variants amid inflation pressures test US consumer resilience,” said the global rating giant Moody’s during Monday, per Reuters.

“Although growth in consumption in H1 unlikely to repeat itself in months ahead, expect consumer spending to continue to fuel US economic growth,” adds Moody’s.

Market reaction

The news challenges the Fed's rate-hike concerns ahead of the key US Consumer Price Index (CPI) data scheduled for release on Friday, also adding to the recent optimism in the market. While portraying the same, the Wall Street benchmarks closed positive and reversed Friday’s losses.

Read: S&P 500 extends on earlier gains, eyes 4600 mark as US session draws to a close