Lockhart Says Weak Consumer Spending Clouds U.S. Outlook

Federal Reserve Bank of Atlanta President Dennis Lockhart said that while first-quarter weakness is probably transitory, he is concerned tepid U.S. consumer spending could hinder a resumption of more robust growth this quarter.

“Consumers seem to be behaving cautiously in most categories of spending,” Lockhart said in Baton Rouge, Louisiana. “Recent consumer behavior is something of a puzzle,” and “the outlook I’ve laid out depends heavily on the health of consumer spending.”