Retail spending in May was weaker than expected, with just a 0.1% increase from the previous month, falling short of estimates. Despite this, the year-over-year sales rose by 2.3%. Excluding autos, sales declined by 0.1%, with gas stations reporting a 2.2% decrease and online outlets seeing a 0.8% increase. The report has left investors uncertain about the economy and the future of monetary policy at the Federal Reserve. Consumer spending makes up a significant portion of economic activity, and any weakness in this area could signal slower growth and pressure the Fed to cut interest rates. Inflation has been a concern for consumers in recent years, with prices steadily rising. The Fed's target for inflation is 2%, and the current rate is 2.7%. Market pricing suggests the possibility of interest rate reductions this year, with traders anticipating potential cuts. Fed officials have indicated a more cautious approach, with Philadelphia Fed President Patrick Harker suggesting a rate cut later in the year only if data supports it.