The Globe and Mail reports in its Saturday edition that U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods such as motor vehicles ahead of the Trump administration's tariffs faded, while monthly inflation maintained a moderate pace of increase. A Reuters dispatch to The Globe says the Commerce Department's report on Friday likely will have no impact on near-term monetary policy as Federal Reserve chair Jerome Powell told lawmakers this week that the U.S. central bank needed more time to gauge the impact of the import duties on prices before considering a resumption of interest rate cuts. Business surveys have suggested tariffs could start driving up prices this summer, a sentiment shared by Mr. Powell and most economists. President Donald Trump's sweeping tariffs, which have led businesses and households to frontrun imports and goods purchases to avoid higher prices from duties, have muddled the economic picture, and the spending report offers no clarity. Consumer spending dropped 0.1 per cent last month after an unrevised 0.2-per-cent gain in April. "The report is a wash for the Fed and won't alter its wait-and-see stance," said BMO senior economist Sal Guatieri.