{"text":[[{"start":7.5,"text":"US shoppers stepped up spending in May as bumper tax refunds offset the inflationary effects of the Iran war, signalling the economy remains in robust shape as Kevin Warsh takes the helm at the Federal Reserve. "}],[{"start":20.3,"text":"Retail sales in May rose 0.9 per cent from the previous month to $764bn, according to data released by the Census Bureau on Wednesday, ahead of Wall Street expectations. They were up 6.9 per cent versus May 2025. "}],[{"start":37.2,"text":"Much of the increased spending was driven by elevated prices at the pump, with petrol station sales rising 3.4 per cent. But underlying retail sales were also strong, with a core measure stripping out volatile items including fuel and car sales gaining 0.7 per cent."}],[{"start":54.75,"text":"Economists said the rise suggested tax refunds from Donald Trump’s 2025 budget legislation, averaging more than $3,500 per return, were still fuelling enthusiasm among shoppers even as the war has driven up prices at the pump and throughout the wider economy. "}],[{"start":72.05,"text":"Thomas Simons at Jefferies said there was “little sign of fatigue from high gas prices” and that consumers were “showing yet another layer of resilience that keeps economic growth rolling”. "}],[{"start":84.39999999999999,"text":"The better than expected retail sales figures come as Warsh, who has succeeded Jay Powell as Fed chair, hosts his first meeting of the central bank’s rate-setting committee this week. He is set to hold his first press conference on Wednesday afternoon, which will be watched by investors for any indications of how he plans to reform the institution. "}],[{"start":104.1,"text":"Prices at the pump jumped as much as 50 per cent in the months after the US and Israel’s first strikes on Iran in February, as Tehran closed the Strait of Hormuz to tanker traffic. Inflation hit a three-year high of 4.2 per cent in May. "}],[{"start":120.8,"text":"But after peaking at more than $4.50 a gallon in early May, according to the US Energy Information Administration, petrol prices have begun to recede, falling to $4.05 by the end of last week. GasBuddy, a price-tracking app, estimates they have dropped below $4. "}],[{"start":139.95,"text":"“For now, households are still prepared to spend, largely funded through saving less and borrowing more,” said James Knightley at ING. "}],[{"start":148.25,"text":"Surveys showed Americans became slightly less gloomy about the war in May, with the University of Michigan’s closely watched consumer sentiment index recovering from a record low of 44.8 in May to 48.9 in June. "}],[{"start":162.15,"text":"However, the figure remains well below where it was a year ago as shoppers fret about the cost of living and inflation. Economists caution that when the rebates run out, spending could still slow considerably. "}],[{"start":174.55,"text":"“Consumption regained some momentum over the spring, but the sugar rush from bigger-than-usual tax refunds will wear off soon,” said Samuel Tombs at Pantheon Macroeconomics. "}],[{"start":192.65,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1781749349_3654.mp3"}