The Globe and Mail reports in its Wednesday, June 18, edition that U.S. retail sales fell more than expected in May, mainly due to a drop in motor vehicle purchases as concerns over potential tariff-related price hikes eased. A Reuters dispatch to The Globe reports that despite this, consumer spending is supported by solid wage growth. The U.S. Commerce Department reported the largest sales decline in four months, indicating a softening of domestic demand amidst moderate job growth. Federal Reserve officials meeting on Tuesday and Wednesday are expected to leave the benchmark overnight interest rate unchanged in the 4.25 per cent to 4.50 per cent range while monitoring the economic impact of tariffs and tensions in the Middle East. Oxford Economics economist Michael Pearce says: "Tariff announcements have had a clear impact on the timing of large-ticket purchases, notably autos, but there are few signs yet that tariffs are leading to a general pullback in consumer spending. We expect a more marked slowdown to take hold in the second half of the year, as tariffs begin to weigh on real disposable incomes." Sales last month were also held down by lower receipts at service stations because of a decline in gasoline prices.