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Presentation - Item 1 Budget Work Study Session
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Presentation - Item 1 Budget Work Study Session
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City Clerk
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5/15/2025
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FA <br />Inflation & Interest Rates <br />Slowing Investment & <br />Development <br />Consumer Confidence & <br />Spending <br />"As inflation has come down, it remains above our longer -run goal. <br />We are prepared to maintain the current stance of policy until we <br />gain greater confidence that inflation is moving susta1nably toward 2 <br />percent." <br />— Federal Reserve Chair Jerome Powell, April 16, 2025 <br />The National Association of Home Builders has reported ongoing <br />weakness in builder confidence, citing elevated mortgage rates, rising <br />construction costs, and financingchallenges as key barriers to new <br />J Y <br />development activity. <br />Consumer confidence has declined sharply, with the index falling to <br />86.0 in April, the lowest level since May 2020. Reuters had forecast <br />smaller drop to 87.5. <br />— Source: Reuters, April 29, 2025 <br />
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