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McHenry continues to advocate for crypto legislation, including for stablecoins, in Congress.

Tariffs and uncertain consumer spending dampened Wall Street's enthusiasm for the retailer.

New data may point to emerging tension between the U.S. Federal Reserve's dual inflation and employment goals, as price pressures remained sticky in January while consumer spending slowed more than expected. Traders maintained bets the Fed will cut interest rates by a quarter of a percentage point at its June and September meetings this year, but analysts noted the situation seemed to have become more complex and could present policymakers with a difficult decision in the weeks ahead. Hints of slowing growth alongside inflation still stuck above the Fed's 2% target, "presents a dilemma for the Fed...if you add them together, that equals stagflation," said Peter Cardillo, chief market economist for Spartan Capital Securities in New York.

WASHINGTON (Reuters) -U.S. consumer spending unexpectedly fell in January while the annual increase in inflation slowed, supporting financial market expectations that the Federal Reserve would resume cutting interest rates in June. But the moderation in annual inflation, which partly reflected last year's high readings dropping out of the calculation, is unlikely to be sustained as President Donald Trump's administration ratchets up tariffs on imports, which economists warned would raise prices. "The good news is consumer inflation broke the curse of the January effect," said Christopher Rupkey, chief economist at FWDBONDS.

The latest reading of the Federal Reserve's preferred inflation gauge showed prices rose on a monthly basis but dropped year over year, which should keep the central bank on hold at its next meeting in March.

Ongoing tariff threats from Washington and potentially sweeping government job cuts have darkened consumers’ mood and may be weighing on an otherwise mostly healthy economy. Data released Wednesday showed that consumers slashed their spending by the most since February 2021, even as their incomes rose. On a positive note, inflation cooled, but President Donald Trump’s threats to impose large import taxes on Canada, Mexico, and China -- the United States’ top trading partners -- will likely push prices higher, economists say.

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