Retail Sales Show August Increase

Why it matters locally: The Federal Reserve's anticipated interest rate hike, following this retail sales increase, could impact borrowing costs for Minnesota businesses and consumers, affecting everything from home mortgages to business loans within the state.

Retail sales in August increased by 1.2%, surpassing economists' expectations. This growth in consumer spending occurred as the Federal Reserve prepared for its first short-term interest rate increase in three years. The central bank has indicated its intention to raise rates as a measure to address inflation. The Federal Reserve's decision is anticipated to occur this Wednesday.