Why US Consumer Spending Is Defying Higher Interest Rates

The Federal Reserve held interest rates at 5.25% for over a year, but consumer spending hasn't cracked. In this episode, Lucas and Luna examine why the American consumer keeps spending despite the highest borrowing costs in two decades. They look at two key factors: the lock-in effect from low-rate mortgages and auto loans that insulates 60% of households from higher rates, and the strong labor market that has kept income growth positive. They also discuss the June 2026 jobs report preview and what the 4.3% unemployment rate means for the spending outlook. Drawing on recent data including the April PCE price index and the Fed funds rate, they explore whether this resilience will last or whether a delayed pullback is coming. If you've wondered why the economy hasn't slowed as much as expected, this episode offers a data-driven explanation. #USConsumerSpending #FederalReserve #InterestRates #LockInEffect #LaborMarket #Unemployment #PCE #JobsReport #EconomicResilience #MortgageRates #AutoLoans #IncomeGrowth #FOMC #June2026 #USEconomy #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo