Policymakers in the US have been using all the tools at their disposal to cool down the economy. They have raised interest rates nine times over the past year in an effort to discourage consumer spending. Now, they may be seeing some results.

On Friday, the Commerce Department released its report on consumer expenditures for February. It says spending in the month rose by 5 percent compared to a year earlier. That is the smallest increase since September 2021. The report found that consumers cut back spending at restaurants, bars and hotels.

President Joe Biden said in a statement released on Friday that Americans are "making progress" in the fight against inflation. He said his administration is working to give families more "breathing room".

Policymakers at the Federal Reserve closely monitor the spending figures as a key economic indicator. They have seen other signs that inflation is starting to ease but believe it remains "elevated."

Fed Chair Jerome Powell said on March 22 that he and his colleagues are still "very focused" on bringing prices down.