US Economic Growth Stalls Amid Bank Woes and Consumer Spending Slowdown

The US economy is losing steam due to nervous shoppers dialing back their spending and anxious lenders keeping a tight grip on credit. The economy is projected to lose more steam in the months to come, as rising prices and higher interest rates take a toll on families and businesses. Although the fast-food chain McDonald's reported strong sales so far in 2023, customers are less likely to splurge after two years of rising food costs. The Federal Reserve is still raising interest rates, and the ill effects of the banking crisis suggest that growth through the remainder of this year and into next is going to be very much on the soft side. Politics could also pose a risk, as members of Congress squabble over the federal government's debt limit.