Household consumption increased for the fourth month in a row in April but disposable income after adjusting for inflation was nearly flat indicating consumers are dipping in savings and wages are not rising at the rate of inflation.
Initial weekly jobless claims fell to 210,000 in the week ending on May 21 from the unrevised level of 218,000 in the previous week.
U.S. economic growth in the first quarter of 2022 was revised lower by 0.1 percentage point reflecting lowered inventories investment and higher trade deficit partially offset by higher consumer spending. Wages and salaries in the fourth quarter of 2021 were revised higher.
Fed policy makers were unanimous in the need to lift rates by 50 basis points at the next meetings in June and July. The committee also showed its readiness to move the policy stance to restrictive if economic conditions warrant.
New home sales in April declined sharply after buyers faced higher home prices and a surge in mortgage rates.
Home sales in April declined from a year ago and from the previous month and median home price rose to $391,200. The record pace of home sales has been declining and fell for the third month in a row and dropped to the lowest in nearly two years.